Alberto Francese, an analyst from Intesa Sanpaolo, maintained the Hold rating on Elica S.p.A.. The associated price target is €1.80.
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Alberto Francese has given his Hold rating due to a combination of factors influencing Elica S.p.A.’s current market position. The company has shown resilience by outpacing the market through strategic initiatives like direct distribution in North America and a shift towards becoming a cooking company. Despite these efforts, the overall market remains challenging, with ongoing negative demand and over-capacity issues.
While Elica’s revenues have seen growth, particularly in the cooking and motors divisions, this has been offset by margin erosion due to aggressive pricing and promotional strategies. The company’s investments in marketing and transformation projects have also impacted profitability. Management’s guidance for stable revenues and EBIT margins, along with the competitive pressure from Asian manufacturers, further supports the Hold rating, as the market conditions are expected to remain difficult in the near term.
In another report released on October 31, Intermonte also maintained a Hold rating on the stock with a €1.80 price target.