Andrea Randone, an analyst from Intermonte, maintained the Buy rating on Arnoldo Mondadori Editore SPA (0KAV – Research Report). The associated price target remains the same with €3.20.
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Andrea Randone has given his Buy rating due to a combination of factors including the company’s ability to maintain solid cash flow generation despite a weak start to the year. Although the first quarter results were soft, they were in line with expectations, and the management has confirmed the full-year guidance, indicating confidence in achieving the annual targets.
The anticipated acceleration in the second half of the year, driven by a robust publishing plan and cost savings, further supports the positive outlook. Additionally, the company’s healthy cash flow generation allows for a sustainable dividend policy and potential for further acquisitions. The stock is currently trading at a significant discount to its peers, making it an attractive investment opportunity. These factors combined justify the Buy rating and the target price of €3.2.
In another report released on May 15, Intesa Sanpaolo also maintained a Buy rating on the stock with a €2.80 price target.