Arianna Terazzi, an analyst from Intesa Sanpaolo, maintained the Buy rating on SECO S.p.A.. The associated price target remains the same with €3.70.
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Arianna Terazzi’s rating is based on SECO S.p.A.’s strong third-quarter performance, which aligned with expectations and demonstrated significant growth in both revenue and profitability. The company confirmed its fiscal year 2025 guidance, supported by a robust demand recovery, as evidenced by a book-to-bill ratio greater than one and an increasing order backlog. Additionally, SECO is expanding its production capabilities with new products and facilities, aiming to increase capacity by 50% within the next 3-5 years.
SECO’s growth prospects are further bolstered by a solid product roadmap, including collaborations such as the one with Raspberry Pi and the Clea Vend telemetry platform. The company’s management highlighted a 10% year-over-year increase in order backlog and ongoing investments to expand production capacity, which are expected to enhance manufacturing efficiencies. These factors, combined with an improved earnings trajectory and increasing recurring revenues from CLEA, underpin the positive outlook and Buy rating for SECO’s stock.