DHH S.p.A, the Technology sector company, was revisited by a Wall Street analyst on September 25. Analyst Giorgio Tavolini from Intermonte maintained a Buy rating on the stock and has a €31.00 price target.
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Giorgio Tavolini has given his Buy rating due to a combination of factors that highlight DHH S.p.A’s strong financial performance and strategic growth initiatives. The company delivered robust first-half results, surpassing revenue and EBITDA expectations, with a notable improvement in margins across its various markets and business lines. This performance is underpinned by effective cost management and impressive cash conversion, as evidenced by the full conversion of EBITDA into operating cash flow.
Moreover, DHH’s strategic acquisition of Teknonet is seen as a significant move that enhances its presence in Italy and supports its entry into the Managed Service Provider (MSP) segment. This acquisition aligns with DHH’s M&A strategy, aimed at expanding its cloud computing services and entering new vertical markets. The company’s business model, characterized by high cash generation and a leasing approach that mitigates technological obsolescence, further supports the positive outlook. Consequently, Tavolini maintains a target price of €31, reflecting a substantial upside potential from current levels.