Newlat Food S.p.A. Buy Rating: Strong Financial Performance, Strategic Initiatives, and Growth Potential

Newlat Food S.p.A. (NWL – Research Report), the Consumer Defensive sector company, was revisited by a Wall Street analyst yesterday. Analyst Arianna Terazzi from Intesa Sanpaolo maintained a Buy rating on the stock and has a €19.50 price target.

Arianna Terazzi has given her Buy rating due to a combination of factors that reflect Newlat Food S.p.A.’s strong financial performance and strategic initiatives. The company has reported robust results for the fiscal year 2024, surpassing expectations in cash generation, which has led to significant deleveraging. This financial strength is further supported by effective net working capital management, which continues to offer potential for future cash flow improvements.
Additionally, the successful integration of Princes is expected to yield further synergies in purchasing, production, and commercial operations, alongside cost and structural savings. Management has reaffirmed its financial targets for 2025 and 2030, indicating confidence in achieving revenue and EBITDA goals. The company is also exploring potential mergers and acquisitions, which could enhance its product portfolio and market presence. These factors, combined with a favorable valuation outlook, underpin the Buy rating recommendation.