OMER S.p.A.: Sector Tailwinds, Solid Fundamentals and Undemanding Valuation Support Buy Rating and €5.5 Target Price

Analyst Alessio Olmi from TP ICAP MIDCAP maintained a Buy rating on OMER S.p.a. and keeping the price target at €5.50.

Alessio Olmi has given his Buy rating due to a combination of factors tied to both sector dynamics and OMER S.p.A.’s specific positioning. He notes that Alstom’s latest quarterly figures confirm robust demand in the rail industry, with a very strong order intake, an extended backlog, and an ongoing shift toward more complex, higher-specification rolling stock. This evolution supports a richer content per vehicle and greater customisation needs, which directly benefits specialists in interiors and bespoke solutions such as OMER. In Olmi’s view, the improved quality and duration of OEM backlogs reduce the likelihood of disruptive production schedule changes, thereby enhancing OMER’s operational visibility over the coming years.

He also highlights that OMER’s share price pullback of around 20% has restored valuation appeal, creating an entry point ahead of potential improvements in the company’s reported metrics. Based on his estimates, the stock trades at modest EV/EBITDA and forward P/E multiples relative to its fundamentals, while the company maintains a net cash position, strong margins, and a return on capital employed close to 17%. Olmi expects that as order intake and capacity utilisation for 2026–2027 become more clearly evidenced in OMER’s numbers, the market will reassess the stock upward. Given this combination of sector tailwinds, reduced structural risk, solid financial profile, and undemanding valuation, he concludes that the risk–reward is skewed to the upside and justifies a Buy rating with a €5.5 target price.

According to TipRanks, Olmi is ranked #3987 out of 11984 analysts.