Strategic Restructuring and Long-term Growth Potential: Davide Longo’s Buy Rating on Star7 S.p.A

In a report released today, Davide Longo from TP ICAP MIDCAP maintained a Buy rating on Star7 S.p.A, with a price target of €12.40.

Davide Longo has given his Buy rating due to a combination of factors that highlight Star7 S.p.A’s strategic focus on enhancing profitability. Despite the company’s revenues being slightly below expectations for the first half of 2025, this is attributed to a deliberate shift towards higher value-added projects and the phasing out of less profitable contracts. This strategic rationalization, although temporarily impacting growth, is expected to strengthen the company’s financial foundation in the long term.
Longo emphasizes that the company’s efforts in restructuring and focusing on core profitable segments, such as Engineering and Experience & Product Knowledge, are crucial for future growth. The aerospace and defense sectors are driving demand, while the automotive sector presents some challenges. The analyst maintains confidence in Star7’s ability to rebound in 2026, with a target price of €12.4, reflecting the anticipated recovery and long-term value creation potential.