On Thursday, Kepler Cheuvreux analyst upgraded Investis Holding SA (IREN:SW) stock rating from Hold to Buy, setting a new price target of CHF2.30, up from the previous CHF2.10. The analyst cited the company's potential for recovery from its 2024 underperformance, noting its attractive valuation with an EV/EBITDA of 5.4x and a P/E ratio of 8x for the projected 2025 earnings.
The analyst acknowledged that while governance issues at Investis have not been fully resolved, there is a possibility that investor sentiment could improve in anticipation of the confirmation of Gianluca Bufo as CEO at the upcoming shareholder meeting. The upgrade also reflects adjustments to the company's forecast, with the consolidation of EGEA now expected in 2025, a year earlier than previously projected.
The revised valuation model, which rolls over to 2025, supports the higher price target. The analyst believes that the current share price of Investis presents an opportunity for investors, with the potential for a dividend yield greater than 7%. The anticipated upside to the new target price is approximately 20%, which has influenced the decision to upgrade the stock rating to Buy.
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