Intesa Sanpaolo analyst Arianna Terazzi reiterated a Buy rating on Sicily By Car S.P.A. (SBC – Research Report) yesterday and set a price target of €6.10.
Confident Investing Starts Here:
- Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions
- Receive undervalued, market resilient stocks straight to you inbox with TipRanks' Smart Value Newsletter
Arianna Terazzi’s rating is based on the positive performance indicators and strategic initiatives undertaken by Sicily By Car S.P.A. The company has shown a significant improvement in revenue per day (RPD) in the early months of the year, suggesting that their shift towards a B2C strategy is proving effective. This strategic pivot is expected to enhance profitability, as evidenced by the increase in rental days and revenue growth in the fourth quarter of the previous year.
Furthermore, the company’s outlook for the fiscal year 2025 is optimistic, with expectations of increased value of production, improved EBITDA and EBIT margins, and positive cash flow from operations. The fair value derived from the discounted cash flow model supports the Buy rating, indicating a substantial upside potential. Additionally, the company’s focus on expanding into international markets and strengthening the more profitable B2C channel further substantiates the positive recommendation.
Based on the recent corporate insider activity of 27 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of SBC in relation to earlier this year.