In a report released yesterday, Alessio Olmi from TP ICAP MIDCAP maintained a Buy rating on OMER S.p.a., with a price target of €5.50.
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Alessio Olmi has given his Buy rating due to a combination of factors that highlight OMER S.p.a.’s strategic positioning and growth potential. The company recently announced a significant contract with Alstom for the supply of fairings for Avelia Stream trains, which is expected to contribute substantially to its revenue in the coming years. This contract not only enhances OMER’s visibility in the European railway sector but also aligns with the broader strategic initiatives in the region, such as the European Union’s TEN-T program aimed at improving cross-border connectivity.
From a financial perspective, OMER’s valuation remains attractive, trading at a discount compared to its peers. The company’s EV/EBITDA multiples for the years 2026-2027 are notably lower, while its estimated return on capital employed (ROCE) is strong at 16%. These financial metrics, combined with the potential for additional orders and the exercise of options for more units, reduce earnings volatility and confirm OMER’s competitive edge. Consequently, Olmi maintains a Buy recommendation with a target price of €5.50.
According to TipRanks, Olmi is a 2-star analyst with an average return of 7.0% and a 50.00% success rate.