Analysts have raised their price target for Safilo Group from €1.56 to €1.71, citing a balanced risk and reward outlook as well as improved profit margin forecasts.
Analyst Commentary
Recent research notes reflect a range of perspectives on Safilo Group’s valuation and growth prospects. Updated price targets and recommendations highlight both optimism and caution among market watchers.
Bullish Takeaways- Bullish analysts highlight the company’s ongoing acceleration toward higher-margin home brands, which is expected to enhance overall profitability.
- Improved operational execution is seen as a driver for bolstering profit margins and supporting a higher valuation for the shares.
- The doubling of Safilo Group's share price since the summer points to growing investor confidence in the underlying business transformation.
- Coverage initiations with Buy ratings indicate optimism about future growth potential and sustained improvements in core business areas.
- Bearish analysts note that the recent sharp rise in share price may limit further immediate upside, making risk and reward appear more balanced at current levels.
- The move to Hold from Buy reflects a moderation of expectations for additional short-term gains without further evidence of execution or growth acceleration.
- Uncertainties remain regarding the sustainability of elevated profit margins and the pace at which the company can continue shifting its portfolio.
What's in the News
- Safilo Group completed the repurchase of 11,484,424 shares for €11.72 million as part of the buyback program announced on July 9, 2024. This represents 2.77% of total shares (Key Developments).
- Between January 1, 2025 and April 24, 2025, Safilo Group repurchased 484,424 shares for €0.44 million, representing 0.12% of total shares (Key Developments).
Valuation Changes
- Fair Value Estimate has increased from €1.56 to €1.71, reflecting a modest upward revision in analysts’ assessment.
- Discount Rate has risen slightly from 12.12% to 12.15%, indicating a marginal adjustment in risk assumptions.
- Revenue Growth Forecast has decreased from 2.94% to 2.20%, showing softer expectations for top-line expansion.
- Net Profit Margin projection has risen from 4.71% to 5.12%, suggesting improved profitability outlook.
- Future P/E ratio estimate has edged up from 17.68x to 18.25x, which points to a modestly higher valuation multiple for Safilo Group shares.
Disclaimer
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