Filippo Migliorisi, an analyst from TP ICAP MIDCAP, reiterated the Buy rating on Italian Exhibition Group SpA (IEG – Research Report). The associated price target remains the same with €7.70.
Filippo Migliorisi has given his Buy rating due to a combination of factors including Italian Exhibition Group SpA’s strategic acquisition of a majority stake in Fenagra, a prominent trade fair in Brazil’s agro-industrial sector. This acquisition is part of IEG’s broader strategy to enhance its international presence and diversify geographically and sectorally. By integrating Fenagra into its portfolio, IEG aims to solidify its position as one of the top trade show organizers in Brazil, a market with significant growth potential.
Furthermore, the acquisition aligns with IEG’s ‘capital-light’ approach, focusing on growth through targeted acquisitions and replicating successful formats in new markets. Although the financial specifics of the deal have not been disclosed, the acquisition is expected to bolster IEG’s medium-term growth prospects, particularly in the high-growth Brazilian market. Despite the lack of detailed data on the acquisition’s immediate impact, the strategic move supports the continuation of the Buy recommendation with a target price of €7.7.
IEG’s price has also changed moderately for the past six months – from EUR6.200 to EUR7.200, which is a 16.13% increase.