| Palingeo SpA is an Italian company operating in the geotechnical and geognostic sectors, engaged in the construction of civil and infrastructural works, soil foundation consolidation, and excavation front support. The Company was established in 1999 in Carpenedolo (BS), following the initiative of a group of professionals with consolidated experience acquired in major industry enterprises. Currently, Palingeo holds a prominent position in the market, placing itself among the national leaders in waterproofing and soil consolidation activities, engineering foundation works, and structural restoration and territorial reorganization, thanks to its high professionalism. The Italian specialized construction market, particularly in the public works segment, is currently characterized by significant expansion. In the coming years, a substantial acceleration in the sector is expected, driven primarily by the interventions outlined in the National Recovery and Resilience Plan (PNRR) and the “Sbloccacantieri” Decree. Significant support is also anticipated from major upcoming events such as the 2026 Winter Olympics in Cortina and the 2026 Mediterranean Games in Taranto. We have conducted the valuation of Palingeo’s equity value based on the DCF methodology and the multiples of a sample of comparable companies. The value resulting from the application of the DCF methodology (which in the calculation of the WACC includes for prudential purposes a specific risk equal to 2.5%) is equal to € 73.6 mln, while the equity value resulting from the multiples method, applying a 25% discount, is equal to € 66.3 mln. The result is an average equity value of € 70.0 mln. The target price is € 10.80, BUY rating and MEDIUM risk. |