David Hayes, an analyst from Jefferies, maintained the Buy rating on Intercos S.p.A.. The associated price target remains the same with €15.80.
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David Hayes has given his Buy rating due to a combination of factors that suggest potential for Intercos S.p.A. despite some challenges. The company is expected to experience a modest increase in organic sales by around 3% for FY25, which is a revision from the previous expectation of 5-7%. This adjustment is primarily due to weaker demand from emerging customers in the EMEA region, which could impact sales growth.
Despite these challenges, Intercos is taking strategic actions to enhance productivity and benefit from a favorable sales mix, particularly with stronger performance in the makeup segment compared to weaker areas like Hair & Body. These efforts are expected to support the company’s commitment to maintaining its profit delivery. Although the slower sales growth might affect the company’s valuation, the strategic initiatives and market positioning provide a basis for the Buy rating.