Intercos S.p.A., the Consumer Defensive sector company, was revisited by a Wall Street analyst today. Analyst David Hayes from Jefferies maintained a Buy rating on the stock and has a €15.30 price target.
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David Hayes has given his Buy rating due to a combination of factors that highlight the potential for Intercos S.p.A.’s stock to appreciate. One of the key reasons is the company’s strategic focus on its core operations, which is expected to enhance profitability despite current challenges in the makeup segment and North American market. Hayes anticipates that the company’s planned share buyback, amounting to 4% of its share capital, will provide additional support to the stock price over the next year, contingent on liquidity conditions.
Furthermore, Intercos is actively working on expanding its operations in North America, which could leverage its financial metrics positively, potentially increasing its net debt to EBITDA ratio to around 2x. Hayes also notes the company’s current valuation at 16x P/E consensus, with expectations for a re-rating to approximately 18x as demand in the makeup sector recovers. These factors collectively underpin the Buy recommendation, reflecting confidence in the company’s growth prospects and market positioning.
Hayes covers the Consumer Defensive sector, focusing on stocks such as Reckitt, DANONE SA, and Nestlé SA. According to TipRanks, Hayes has an average return of 1.4% and a 52.49% success rate on recommended stocks.
In another report released on October 10, Berenberg Bank also maintained a Buy rating on the stock with a €20.00 price target.