Andrea Randone, an analyst from Intermonte, maintained the Buy rating on Sesa S.p.A.. The associated price target is €123.00.
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Andrea Randone has given his Buy rating due to a combination of factors tied to Sesa S.p.A.’s solid operating performance and attractive valuation. The latest quarterly results showed a clear acceleration in both sales and EBITDA, with all core divisions expanding and the more profitable ICT VAS and Digital Green activities driving margin improvement. Cash generation was better than anticipated, supported by tighter working capital management, while net debt came in slightly below expectations despite ongoing business development initiatives. Management reiterated full-year guidance for revenue and EBITDA growth and indicated that current trading conditions could allow results to gravitate toward the upper end of the targeted ranges.
Furthermore, Randone notes that free cash flow is set to strengthen further, helped by disciplined capital spending and a reduction in both ordinary and M&A-related investments. The company is also selectively monetizing non-core stakes, which should provide additional financial flexibility without undermining strategic growth areas. On the back of the stronger trends in Digital Green and ICT VAS, Intermonte has modestly raised its estimates and increased the target price to EUR 123, leaving meaningful upside versus the current share price. In Randone’s view, the combination of improving fundamentals, robust guidance, and a still-compelling valuation profile supports maintaining a Buy recommendation on Sesa S.p.A.
In another report released yesterday, Intesa Sanpaolo also maintained a Buy rating on the stock with a €130.00 price target.