In a report released on September 26, Davide Rimini from Intesa Sanpaolo maintained a Buy rating on Recupero Etico Sostenibile S.p.A, with a price target of €12.10.
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Davide Rimini has given his Buy rating due to a combination of factors including the company’s solid revenue growth and strategic investments. Recupero Etico Sostenibile S.p.A demonstrated an 8% increase in revenue, primarily driven by strong pricing strategies, despite facing challenges such as high cost inflation and a decrease in waste volumes. The company is actively investing in its chemical recycling and hydrogen production facilities, which are expected to be operational by mid-2026, indicating a commitment to future growth and innovation.
Despite macroeconomic uncertainties and a shrinking European plastic recycling market, the management maintains a positive outlook for 2025. They anticipate stable revenue and a slight improvement in operating income. The company’s innovative approach to waste management, particularly through pyrolysis activities, adds significant value. The revised target price of EUR 12.1, based on updated risk-free rate and equity risk premium assumptions, further supports the Buy rating.
According to TipRanks, Rimini is a 4-star analyst with an average return of 11.9% and a 58.93% success rate. Rimini covers the Financial sector, focusing on stocks such as Banca Sistema S.p.A., FNM S.p.A., and doValue S.p.A.