In a report released on September 15, Pietro Nargi from Intermonte maintained a Buy rating on CY4Gate SpA, with a price target of €6.30.
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Pietro Nargi has given his Buy rating due to a combination of factors including CY4Gate SpA’s ongoing reorganization efforts and strong revenue visibility. The company is making significant strides in cash flow management and cost efficiency, which have already started to show positive results. The revenue acceleration has surpassed expectations, and the company has secured a substantial portion of its revenue target through its order backlog.
Despite some challenges in profitability due to higher R&D expenses and non-recurring costs, these investments are expected to enhance cash generation by reducing capital expenditures. The company’s international expansion, particularly in forensic and decision intelligence, along with its strategic focus on new partnerships and product integration, positions it well for future growth. These factors, combined with a raised target price and a positive outlook on reorganization initiatives, underpin Nargi’s Buy rating for CY4Gate SpA.