Safilo Group SpA: Hold Rating Amid North American Uncertainty and European Deceleration

Safilo Group SpA (0NJ5 – Research Report), the Consumer Cyclical sector company, was revisited by a Wall Street analyst yesterday. Analyst Cedric Lecasble from Stifel Nicolaus maintained a Hold rating on the stock and has a €1.02 price target.

Cedric Lecasble has given his Hold rating due to a combination of factors impacting Safilo Group SpA. The company faces uncertainty in its main market, North America, which accounts for a significant portion of its sales. Despite some signs of recovery in the U.S. market, the overall sales growth remains negative, and the loss of the Jimmy Choo license has further complicated the situation.
In addition to the challenges in North America, Safilo’s performance in Europe has shown signs of deceleration, particularly in Germany. While the management has successfully managed profitability and cash flow, the limited visibility into future earnings has led to a cautious approach. As a result, the price target has been slightly reduced, reflecting the trimmed EBITDA forecasts for the coming years.

According to TipRanks, Lecasble is ranked #8840 out of 9347 analysts.