OMER S.p.a. (9WR – Research Report), the Industrials sector company, was revisited by a Wall Street analyst on March 19. Analyst Davide Longo from TP ICAP MIDCAP reiterated a Buy rating on the stock and has a €5.80 price target.
Davide Longo has given his Buy rating due to a combination of factors including OMER S.p.a.’s expected solid financial performance and strategic growth initiatives. The company is projected to achieve significant organic growth of approximately 20% in 2024, largely driven by the integration of the Dolcevita project, which is anticipated to contribute positively to revenue. Despite a slight decline in EBITDA margin due to this integration, the margin is expected to remain robust and above 20%, with an estimated EBITDA increase of about 12% compared to the previous year.
Moreover, OMER S.p.a.’s strong cash generation is expected to further enhance its net cash position, surpassing €20 million. The company’s order backlog is also anticipated to align with previous announcements, supporting future growth. With a positive outlook for 2024 and an even stronger forecast for 2025, particularly due to the Dolcevita project’s contribution, OMER is well-positioned to capitalize on the expanding rail transport sector in Europe and the United States. These factors collectively underpin the Buy recommendation with a target price of €5.8.
9WR’s price has also changed slightly for the past six months – from EUR4.070 to EUR3.950, which is a -2.95% drop .