Stifel Nicolaus analyst Cedric Lecasble maintained a Buy rating on Davide Campari-Milano SpA (58H – Research Report) yesterday and set a price target of €9.00.
Cedric Lecasble has given his Buy rating due to a combination of factors including the company’s recent financial performance and strategic initiatives. The fourth quarter of 2024 showed a positive surprise with a 3% increase in organic top-line growth and a 140 basis point improvement in the underlying EBIT margin, driven by a favorable product mix and reduced advertising and promotion expenses.
Additionally, the company’s free cash flow for the fiscal year 2024 reached €0.6 billion, a significant increase largely attributed to better working capital management. Despite potential challenges such as tariffs on U.S. imports and volatile consumption patterns, the new CEO, Simon Hunt, is focused on deleveraging the balance sheet and optimizing existing assets. This strategic focus, combined with a conservative yet achievable guidance for 2025, supports the Buy rating as the company aims to regain investor confidence.
In another report released on February 20, Kepler Capital also maintained a Buy rating on the stock with a €9.00 price target.
Based on the recent corporate insider activity of 43 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of 58H in relation to earlier this year.
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