Analyst Martino De Ambroggi of Equita Sim maintained a Hold rating on SBE-Varvit S.p.A. Class A, with a price target of €8.80.
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Martino De Ambroggi has given his Hold rating due to a combination of factors impacting SBE-Varvit S.p.A. Class A. The company’s first half of 2025 results were slightly below expectations at the operating level, with revenues and net income falling short of forecasts. Despite this, the EBITDA margin remained strong at 23%, outperforming peers, but it was still down compared to the previous year. The management’s guidance for the full year suggests a modest recovery in sales and margins in the second half, which aligns with the analyst’s estimates.
However, the Hold rating is maintained due to uncertainties in the market recovery, particularly in the commercial vehicles, agricultural, and construction sectors, which are key to the company’s sales. Additionally, the lack of M&A deals and low stock liquidity contribute to the cautious outlook. While SBE-Varvit is trading at a lower EV/EBITDA multiple compared to peers, the limited visibility in market recovery and absence of immediate catalysts justify the Hold recommendation.
VARV’s price has also changed slightly for the past six months – from EUR7.600 to EUR7.850, which is a 3.29% increase.