Star7 S.p.A, the Industrials sector company, was revisited by a Wall Street analyst today. Analyst Davide Longo from TP ICAP MIDCAP reiterated a Buy rating on the stock and has a €12.40 price target.
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Davide Longo has given his Buy rating due to a combination of factors that highlight Star7 S.p.A’s strategic positioning and financial outlook. The company is expected to maintain stable revenues in H1 2025 at approximately €59 million, demonstrating resilience following significant growth in 2024. This stability is attributed to Star7’s strategic shift away from low-margin contracts towards higher value-added projects, particularly in the Experience & Product Knowledge and Engineering segments, which are further supported by strong performance in Brazil.
In terms of profitability, the anticipated EBITDA range of €9–10 million reflects a slight year-over-year increase, driven by operational optimizations and cost control measures. The company’s focus on reducing less profitable segments, such as printing, in favor of more lucrative areas like Engineering, is expected to enhance margins. Additionally, Star7 benefits from a strong client base in sectors like automotive and aerospace, along with international expansion opportunities, notably in India. The stock’s valuation also presents an attractive opportunity, trading at a significant discount compared to peers, which could narrow as the company continues to execute its optimization plans.
According to TipRanks, Longo is a 4-star analyst with an average return of 14.7% and a 63.81% success rate.