doValue S.p.A (1DB0) has received a new Hold rating, initiated by Mediobanca analyst, Simonetta Chiriotti.
Simonetta Chiriotti’s rating is based on several strategic and financial considerations regarding doValue S.p.A. The acquisition of Gardant has placed the company in a stronger strategic position, enhancing its leadership in Italy and diversifying its product offerings. This acquisition has also been accompanied by successful debt refinancing, which has improved the company’s financial robustness. However, despite these positive developments, doValue faces challenges in cash flow generation and deleveraging, which have previously underperformed against expectations.
Moreover, while the company has secured significant new business contracts, the overall market context remains challenging due to low liquidity in its NPE markets. This is compounded by a demanding integration process and a significant level of leverage, which are likely to continue to present obstacles. Given these factors, and the current valuation multiples, Simonetta Chiriotti has opted for a Hold rating, suggesting a cautious approach until there is clearer evidence of improved cash flow generation and successful integration of the recent acquisition.
1DB0’s price has also changed moderately for the past six months – from EUR1.767 to EUR1.512, which is a -14.43% drop .