SBE-Varvit S.p.A. Class A Downgraded to Hold Amid Revenue Decline and Trade Tensions

In a report released on April 25, Martino De Ambroggi from Equita Sim downgraded SBE-Varvit S.p.A. Class A (VARV – Research Report) to a Hold, with a price target of €8.80.

Martino De Ambroggi has given his Hold rating due to a combination of factors affecting SBE-Varvit S.p.A. Class A. The company’s recent financial results were largely in line with expectations, but there were notable declines in revenue and net income, attributed to weak market volumes and price reductions. Despite maintaining a strong EBITDA margin, the overall sales decline has raised concerns.
Additionally, the ongoing trade tensions and the imposition of US tariffs have created uncertainty, impacting the macroeconomic outlook and market visibility. While SBE-Varvit is well-positioned to manage these tariffs due to its strong customer relationships and market position, the indirect effects on market volumes and potential cost-sharing requests from customers add to the uncertainty. Consequently, the analyst has downgraded the stock to a Hold rating, reflecting these challenges and the lowered estimates for future performance.