Initiation of Coverage – 07.10.2024

Predict SpA is an innovative Italian SME based in Bari, Southern Italy, and operating in the healthcare sector, mainly in development and marketing of equipment for non-invasive in vivo diagnostics. Founded in 2008, Predict began its activity as an agent and then, since 2015, as a distributor of diagnostic imaging systems for GE HealthCare in the Puglia Region. Over time, the Company expanded its offerings to include technical assistance services and began to develop innovative technologies for screening via breath analysis, cutting-edge augmented reality and collaborative and social robotics solutions. The Company is divided into four different strategic business units (SBUs), two considered traditional (Imaging and People Support), and two considered innovative, (Mistral and Digital Healthcare). The Imaging SBU deals with the sale of medical imaging equipment, such as ultrasound and x-ray systems, and the marketing of GE HealthCare machinery and equipment. The People Support SBU, on the other hand, provides technical assistance for the equipment supplied by the Imaging SBU, in addition to selling spare parts and add-ons. The Mistral SBU is focused on breath analysis for the screening and monitoring of oncological pathologies, while the Digital Healthcare SBU develops augmented reality and collaborative and social robotics technologies for applications in the healthcare and education sectors. We have conducted the valuation of Predict’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 € 14.8 mln, while the equity value resulting from the multiples method, applying a 25% discount, is equal to € 12.7 mln. The result is an average equity value of € 13.7 mln. The target price is € 1.90, BUY rating and MEDIUM risk.

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