Analyst Davide Longo from TP ICAP MIDCAP maintained a Buy rating on DHH S.p.A (DHH – Research Report) and increased the price target to €30.50 from €30.20.
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Davide Longo has given his Buy rating due to a combination of factors surrounding DHH S.p.A’s strategic acquisition and financial outlook. The company recently acquired a 60% stake in Teknonet, a Managed Service Provider, for €5.6 million, which is expected to enhance DHH’s capabilities in offering technological solutions such as data centers and cybersecurity. This acquisition is anticipated to be financially beneficial, as Teknonet has shown impressive growth with a 17% increase in sales and a 29% rise in net income year-over-year.
Furthermore, the acquisition is expected to be fully consolidated from April 2025, contributing positively to DHH’s earnings per share in the coming years. The transaction was financed through debt, but the leverage remains controlled and within a harmless range. The valuation multiples of the acquisition appear favorable, suggesting a discount relative to DHH’s metrics. These factors, combined with the potential for continued growth and a target price of €30.5, support the Buy recommendation.
According to TipRanks, Longo is ranked #2482 out of 9371 analysts.
In another report released yesterday, Intermonte also maintained a Buy rating on the stock with a €33.00 price target.