For Tp Icap it is BUY top pick 2025
MILAN (MF-NW)--Through ambitious projects, Tisg targets the richest segment of Ultra-High Net Worth Individuals (Uhnwi) and, after having achieved double-digit growth in 2024, aims to improve its margins, thanks above all to an optimized product mix. The stock is included in the list of Tp Icap's top picks for 2025, with a buy rating and a target price of 13 euros. Analysts recall that, as emerged from a December report by Ubs on Uhnwi, their number is expected to reach 327,000 in 2027 (+35% on 2023), of which 123,000 in Asia: both factors in favor of The Italian Sea Group, considering the fact that the Asian market contributes approximately one third to the company's backlog. With solid accounts despite the slight market slowdown (-2.4% of yachts built on an annual basis), a resilient order book and long-term visibility on the completion of major projects, the full-year 2024 guidance was confirmed and, looking ahead to 2025, "these numbers reflect the growing demand for ultra-large yachts, with an increase in global gross tonnage under construction of +5.3%, despite a -2.4% decline in the number of yachts built. These factors support the group's 2025 forecasts", namely €430-450 million in revenues and an EBITDA margin between 18% and 18.5%. For all these reasons and despite a 10% drop in the share price in 2024, Tp Icap believes that the valuation remains "attractive" as "the stock trades at 9.7x its 2024e EPS, with a discount of around 18% compared to Sanlorenzo". Furthermore, "TISG benefits from an order book of €1.3 billion, a portfolio of premium brands and a growing and resilient customer base," the analysts conclude.