Intermonte analyst Enrico Coco upgraded the rating on Tesmec S.p.A. (0MVJ – Research Report) to a Buy on March 11, setting a price target of €0.08.
Enrico Coco has given his Buy rating due to a combination of factors that highlight Tesmec S.p.A.’s promising financial trajectory. The company has shown resilience by aligning its FY24 results with challenging targets set in November, despite a weak performance in the first nine months of the year. A significant transaction with OT Engineering, which involves a 50% ownership transfer of Group Marais, has positively impacted Tesmec’s financials by reducing net debt without affecting EBITDA.
Looking forward, management’s optimistic outlook for 2025 is driven by anticipated revenue growth in key markets, particularly those influenced by the energy transition. The strategic flexibility between Italian and US operations is expected to enhance profitability, with continued improvements in EBITDA margins and a reduction in net debt. These factors, combined with a favorable risk/return profile, have led to an upgrade in Tesmec’s rating from NEUTRAL to OUTPERFORM, with a target price increase from €0.06 to €0.08.