In a report released yesterday, Alberto Francese from Intesa Sanpaolo maintained a Hold rating on Zignago Vetro SpA, with a price target of €9.30.
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Alberto Francese has given his Hold rating due to a combination of factors affecting Zignago Vetro SpA. The company is facing a challenging market environment with ongoing geopolitical tensions and new duties that could impact demand and competition. Despite these challenges, Zignago Vetro has managed to reduce inventories significantly, which should provide them with more flexibility in balancing selling prices with production costs. Additionally, the normalization of energy costs and an increase in production capacity are expected to support the company’s operations.
However, the demand remains mixed, with strong performance in the Food & Beverage sector contrasted by weaker demand in Cosmetics and Perfumery. The company’s revenues have declined, and EBITDA has decreased significantly, although there has been an improvement in free cash flow. Given these mixed signals and the uncertain outlook, Francese maintains a Neutral view on the stock, reflecting both the potential for improvement and the risks associated with the current market conditions.
In another report released on July 17, TR | OpenAI – 4o also downgraded the stock to a Hold with a €9.00 price target.