| Casta Diva Group, in its financial report as of June 30th, 2024, recorded a value of production of €58.22 million, showing a significant increase of 15.2% compared to €50.54 million generated in 1H23A. The Adjusted EBITDA, as of June 30th, 2024, stands at €5.10 million, corresponding to a margin of 8.8%, up from €4.10 million recorded at the end of the first half of 2023 (Adjusted EBITDA margin of 8.1%). The Adjusted EBIT is €3.90 million, representing a margin of 6.7%, up from €2.82 million recorded in 1H23A, with an Adjusted EBIT margin of 5.6%. The Net Income is also positive, amounting to €2.02 million, marking a growth of 12.6% compared to the equivalent figure for 1H23A, which was €1.80 million. In light of the results published in the annual report for FY23A, we fully confirm our estimates for both the current year and the coming years. Specifically, we estimate a value of production for FY24E of €121.10 million and an EBITDA of €11.90 million, corresponding to a margin of 9.8%. For the following years, we expect the value of production to increase to €153.60 million (CAGR 23A-26E: 11.3%) in FY26E, with an EBITDA of €18.00 million (corresponding to a margin of 11.7%), up from €8.57 million in FY23A (corresponding to an EBITDA margin of 7.7%). We conducted the equity value assessment of Casta Diva Group based on the DCF methodology and the multiples of a sample of comparable companies. The DCF method (which, for prudential purposes, includes a specific risk of 2.5% in the WACC calculation) yields an equity value of €69.4 million. The equity value of Casta Diva Group using market multiples amounts to €58.9 million (including a 25.0% discount). This results in an average equity value of approximately €64.2 million. The target price is €3.20, with a BUY rating and MEDIUM risk. |