Initiation of Coverage, Research 5 Dec 2024
Initiation of Coverage – 06.12.2024
| Vivenda Group SpA is an Italian company active in the fields of sponsored restorations at zero cost, Out Of Home Advertising through maxi billboards and maxi LED installations, legal and financial advertising, the renovation of prestigious properties, including those for private use and intended for sale, seismic improvement, and energy efficiency enhancement. The company, leveraging subcontracting firms, operates in sponsored restorations, particularly in civil construction, through Vivenda Lavori Srl, which specializes in the renovation, redevelopment, and consolidation of real estate and architectural assets. The Group operates through four highly integrated and interconnected service lines: OOH Advertising, Architecture, Legal & Financial Advertising, and Real Estate. Vivenda is a Group active in the advertising market and, to a lesser extent, in the real estate market, carrying out various complementary and synergistic activities, also thanks to its partners. In the sponsored restoration sector, it finances and carries out conservative restorations of historical works and monuments with the support of corporate sponsors, while Vivenda Lavori Srl manages the renovation and redevelopment of real estate assets. The advertising market encompasses all economic and financial activities dedicated to promoting products, services, or brands through various communication channels. In Italy, the advertising sector reached a total value of over €9.20 billion, recording growth of 2.6% compared to 2022. We conducted the valuation of Vivenda’s equity range using the DCF methodology and the multiples method based on a sample of comparable companies. The value resulting from the DCF method (which includes a specific risk of 2.5% in the WACC calculation for prudential purposes) is €42.3 million, while the value derived from the multiples method, applying a 25.0% discount, is €33.9 million. This results in an average equity value of €38.1 million. The target price is €4.10, with a BUY rating and MEDIUM risk. |