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NVM: Cost Optimisation And Future P E Expansion Will Drive Upside

Production Ramp-Up Will Fuel Premium Electric Vehicle Demand

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NVM
AnalystConsensusTarget
Not Invested
Published 18 Feb 2025

Update shared on 10 Dec 2025

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AnalystConsensusTarget's Fair Value
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1Y
-51.8%
7D
3.5%

Analysts have raised their price target on Novem Group by €0.00 to €14.45 per share, citing slightly stronger long term revenue growth expectations that more than offset a modestly higher discount rate and a marginally lower profit margin outlook. This results in a higher assumed future P E multiple.

What's in the News

  • Plans to close the Bergamo, Italy site by the end of 2025, following the earlier transfer of production to Pilsen, Czech Republic and Zalec, Slovenia, as part of a broader cost optimisation move (Key Developments)
  • Bergamo operations now limited to a small sales office with three employees, with Novem committing to socially acceptable solutions for the affected workforce (Key Developments)
  • Customer relationships in Italy to be managed from the Vorbach, Germany office, with the company emphasizing continuity and quality of service for Italian clients (Key Developments)

Valuation Changes

  • Fair Value per Share remained unchanged at €14.45, indicating no revision to the overall equity valuation despite underlying assumption changes.
  • The Discount Rate increased significantly from 6.80 percent to 9.98 percent, reflecting a higher assumed cost of capital or risk environment.
  • Revenue Growth rose moderately from 1.32 percent to 1.75 percent, pointing to slightly stronger long term top line expectations.
  • The Net Profit Margin edged down marginally from 3.64 percent to 3.63 percent, implying a slightly more cautious view on future profitability.
  • The Future P E Multiple increased notably from 42.8x to 50.6x, contributing to a higher implied valuation multiple despite the higher discount rate.

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Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.