Intesa Sanpaolo analyst Giada Cabrino maintained a Buy rating on SIT S.p.A. (SIT – Research Report) yesterday and set a price target of €1.70.
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Giada Cabrino has given her Buy rating due to a combination of factors including SIT S.p.A.’s strategic initiatives and anticipated growth. The company has streamlined its production chain, reducing fixed costs, and diversified into growth segments, which helps mitigate regulatory risks. Additionally, SIT has strengthened its commercial relationships, which is expected to drive revenue growth in the high single digits, particularly in the second half of 2025.
Despite challenges in FY24, such as one-off impacts on EBIT and net income, SIT’s outlook remains positive. The Heating & Ventilation Division is expected to recover with product diversification, while the EBITDA margin is anticipated to return to double digits, aiding debt reduction. The company’s proactive approach to optimizing its industrial footprint and cost structure has already yielded efficiencies, supporting the Buy rating despite the current high debt levels.