Analyst Constantin Hesse of Jefferies maintained a Hold rating on Industrie De Nora SpA (DNR – Research Report), retaining the price target of €8.00.
Constantin Hesse has given his Hold rating due to a combination of factors related to Industrie De Nora SpA’s financial outlook and strategic challenges. The company’s preliminary results for 2024 were confirmed, but the guidance for 2025 shows a decline in EBITDA by approximately 4%. This decline was somewhat anticipated, yet it reflects a cautious outlook.
Furthermore, the medium-term guidance from 2024 to 2027 is notably affected by uncertainties in the green hydrogen transition, which is expected to impact both revenue and profitability in the latter years of this period. The projected stable to low single-digit revenue growth and an adjusted EBITDA margin of 15-17% are significantly below current market estimates. Additionally, the expectation of no change in net cash by 2027 compared to 2024, partly due to high capital expenditures, suggests financial constraints that could pressure the stock. These elements contribute to the Hold rating as they indicate potential challenges ahead for the company.
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