| At the end of 2023, Revenues reached € 10.64 mln, an increase of 196.7% compared to the previous period when they amounted to € 3.59 mln, overcoming our previous estimates of € 10.00 mln. EBITDA as of December 31, 2023 amounted to € 2.05 mln, facing a steep growth compared to € 0.30 mln of the previous year. Similarly, the EBITDA margin shows a substantial improvement, rising from 6.1% in FY22A to 18.1% in the analyzed period. EBIT amounts to €1.05 million, significantly higher than the FY22A value of €0.20 million. Net Income stands at €0.62 million, marking a substantial improvement from the previous period’s €0.10 million. On the balance sheet side, the Net Financial Position (NFP) as of December 31, 2023, amounts to €0.64 million in debt, worsening compared to the year-end 2022 figure of €0.63 million (cash positive). In light of the results published in the annual report for FY23A, we are adjusting our estimates for both the current year and the coming years. In particular, we estimate revenues for FY24E to be €12.20 million and EBITDA to be €3.05 million, corresponding to a margin of 23.6%. For the subsequent years, we expect revenue to increase to €17.00 million (CAGR 23A-26E: 16.9%) by FY26E, with EBITDA reaching €5.70 million (corresponding to a margin of 32.2%), up from €2.05 million in FY23A (corresponding to an EBITDA margin of 18.1%). On the balance sheet side, we anticipate an improvement in the NFP, which according to our estimates will increase from €0.64 million in debt in FY23A to €3.27 million (cash positive) by FY26E. We have conducted the valuation of Finanza,Tech’s equity value based on the DCF methodology. The DCF method (which in the calculation of the WACC also includes a specific risk of 2.5% for prudential purposes) provides an equity value of € 30.7 million. The target price is therefore € 2.30 (prev. € 3.00), we confirm BUY rating and MEDIUM risk. |