TXT e solutions SPA (0NLD – Research Report), the Technology sector company, was revisited by a Wall Street analyst today. Analyst Diego Esteban from Stifel Nicolaus maintained a Buy rating on the stock and has a €47.00 price target.
Diego Esteban has given his Buy rating due to a combination of factors including TXT e solutions SPA’s strong revenue growth and promising future prospects. The company reported a significant increase in organic revenue for FY24, with a 22% year-over-year rise to €304 million, driven by robust performances across its key segments such as Software Engineering, Smart Solutions, and Digital Advisory. Despite a slight narrowing of the EBITDA margin due to increased investments and lower-margin contracts, the overall EBITDA still grew by 24% year-over-year, indicating strong operational performance.
Esteban also highlights the company’s strategic investments which are expected to enhance future profitability. The anticipated improvement in EBITDA margin to approximately 14% in FY25 further supports the positive outlook. Additionally, the stock’s current trading valuation at 18.9x/16.2x 2025E/2026E EPS suggests potential upside, making it an attractive investment opportunity. These factors collectively contribute to Esteban’s Buy rating for TXT e solutions SPA.