Is It Too Late To Consider Buying SIT S.p.A. (BIT:SIT)?

SIT S.p.A. (BIT:SIT), is not the largest company out there, but it saw a double-digit share price rise of over 10% in the past couple of months on the BIT. The company is inching closer to its yearly highs following the recent share price climb. As a small cap stock, hardly covered by any analysts, there is generally more of an opportunity for mispricing as there is less activity to push the stock closer to fair value. Is there still an opportunity here to buy? Let’s examine SIT’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.

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Is SIT Still Cheap?

Great news for investors – SIT is still trading at a fairly cheap price. Our valuation model shows that the intrinsic value for the stock is €2.03, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. What’s more interesting is that, SIT’s share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.

See our latest analysis for SIT

What does the future of SIT look like?

Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. However, with a relatively muted revenue growth of 7.5% expected in the upcoming year, short term growth doesn’t seem like a key driver for a buy decision for SIT.

What This Means For You

Are you a shareholder? Even though growth is relatively muted, since SIT is currently undervalued, it may be a great time to increase your holdings in the stock. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on SIT for a while, now might be the time to enter the stock. Its future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy SIT. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed investment decision.

If you want to dive deeper into SIT, you'd also look into what risks it is currently facing. Case in point: We've spotted 3 warning signs for SIT you should be aware of.

If you are no longer interested in SIT, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.