Intesa Sanpaolo analyst Gabriele Berti reiterated a Buy rating on Esprinet Spa (0NFS – Research Report) on May 15 and set a price target of €6.00.
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Gabriele Berti has given his Buy rating due to a combination of factors including Esprinet Spa’s strategic initiatives and market positioning. Despite facing challenges such as increased operational costs and a higher net working capital, Esprinet is actively working on enhancing operational efficiency in its core divisions. The company is focusing on optimizing its cost structure and expanding its market presence through new distribution agreements and selective mergers and acquisitions.
Furthermore, the company’s Green Tech division, Zeliatech, is experiencing rapid growth, which is expected to continue as it capitalizes on emerging opportunities. Although the company’s guidance was below expectations, the stock is currently trading at compressed multiples, which do not fully reflect its shift towards higher value-added activities and its strong position in the ICT distribution market in Italy and Spain. These factors contribute to Berti’s confidence in maintaining a Buy recommendation for Esprinet Spa.
In another report released on May 15, Intermonte also maintained a Buy rating on the stock with a €6.30 price target.