Intesa Sanpaolo analyst Alberto Francese maintained a Buy rating on Smart Capital S.P.A. (SMCAP – Research Report) yesterday and set a price target of €1.85.
Alberto Francese has given his Buy rating due to a combination of factors including Smart Capital S.P.A.’s impressive financial performance and strategic investment approach. The company reported a significant increase in net income for the fiscal year 2024, driven by a doubling of revenues and substantial growth in financial income. This financial success was bolstered by dividends from PIPE investee companies and capital gains from the sale of portfolio companies.
Moreover, Smart Capital’s investment strategy focuses on companies that can act as market consolidators, particularly in fragmented sectors like mechanics, manufacturing, specialty logistics, and technology. The company’s prudential approach to building its portfolio, alongside strategic investments such as the cornerstone role in the Next Geosolutions IPO and the acquisition of a stake in the Ferrari Group IPO, underscores its potential for future growth. These factors, combined with a calculated net asset value suggesting a fair value with significant upside potential, support Francese’s Buy rating.