Star7 S.p.A: Strong Financial Performance and Growth Potential Drive Buy Rating

Intermonte analyst Andrea Randone has maintained their bullish stance on STAR7 stock, giving a Buy rating on March 26.

Andrea Randone has given his Buy rating due to a combination of factors that highlight Star7 S.p.A’s strong financial performance and growth potential. The company’s FY24 results showcased significant business growth, with a 15% year-over-year increase in revenues, driven by organic expansion and high-margin markets such as the US and Brazil. This growth is supported by Star7’s unique business model, which focuses on full-service and multi-year contracts, providing high visibility and stability in a volatile market.
Moreover, Star7’s strategic initiatives, such as cost rationalization and working capital optimization, have led to improved cash generation and margin expansion. The company’s adjusted EBITDA margin increased to 15.7%, and the net financial position improved significantly, indicating a solid growth trajectory. Additionally, the launch of a buyback program and the introduction of the 7AI business line, which leverages generative AI, are expected to further enhance the company’s growth prospects. These factors, combined with an attractive valuation and a target price increase to €11.00, underpin Randone’s positive outlook on the stock.

In another report released on March 26, TP ICAP MIDCAP also maintained a Buy rating on the stock with a €12.40 price target.