Tesmec S.p.A.: Buy Rating Affirmed on Strong Q1 Performance and Strategic Growth Potential

Tesmec S.p.A. (0MVJ – Research Report), the Industrials sector company, was revisited by a Wall Street analyst yesterday. Analyst Enrico Coco from Intermonte maintained a Buy rating on the stock and has a €0.08 price target.

Enrico Coco has given his Buy rating due to a combination of factors that highlight Tesmec S.p.A.’s potential for growth and financial improvement. The company’s first-quarter results for 2025 were slightly better than anticipated, with revenues surpassing expectations and demonstrating a solid start to the year. This performance was primarily driven by increased volumes in the Energy and Rail sectors, which contributed to a 10% revenue growth compared to the previous year’s figures.
Additionally, the management’s confirmation of the fiscal year 2025 outlook, along with strategic partnerships such as the one with Alstom, indicates a positive trajectory for the company. The anticipated growth in key markets, supported by the energy transition and manufacturing flexibility, is expected to result in rising revenues and improved EBITDA margins. Despite the challenging macroeconomic environment, the company’s execution in line with expectations and potential for successful de-leveraging and extraordinary transactions support the Buy rating, although it is acknowledged as a risky investment.