Initiation of Coverage – 22.04.2024

Casta Diva Group SpA (hereinafter referred to as “Casta Diva Group” or “the Company”) is a company specializing in the design and management of corporate events and the production of commercials, viral videos, digital content, and short films. It was founded in 2005 by Andrea De Micheli and Luca Oddo. The Company is the parent company of the eponymous Group (hereinafter “the Group”) and operates through two divisions. The Creative Content Production division focuses on the production of commercials, TV programs, digital and viral videos, films, branded content, web and TV series. In this area, Casta Diva Group operates through its subsidiaries Casta Diva Pictures, headquartered in Milan and present in several countries, Akita Film, and the soon-to-be-acquired E-Motion. The Live Communication division, on the other hand, mainly deals with the planning and management of corporate events, conventions, online events, roadshows, trade show booths, team-building activities, product launches, press conferences, motivational experiences, festivals, and concerts (both in-person and digital). In this area, Casta Diva Group operates in both the B2B and B2C markets through its subsidiaries G.2 Events, Casta Diva Ideas, Genius Progetti, and Blue Note, a famous restaurant and Jazz Club in Milan. Casta Diva Group operates in the Live Communication and Advertising segments, where it has become a leader with a market share close to 10.0%. In recent years, the Advertising market has undergone significant transformations due to social and economic factors such as economic crises, recessions, pandemics, and wars. Like all communication sectors, the world of events has also undergone significant transformations in recent years. The Live Communication market is continuously evolving, driven by technological innovations, culture, and social trends. The demand shows a growing need for participation in meetings, driven not only by the renewed desire for social interaction and personal networking opportunities but also by the high experiential value offered by events. We have conducted the valuation of Casta Diva Group’s equity value based on the DCF methodology and the multiples of a sample of comparable companies. The DCF method (which prudently includes a specific risk of 2.5% in the calculation of the WACC) yields an equity value of €71.3 million. The equity value of Casta Diva Group using market multiples amounts to €57.0 million (including a discount of 25.0%). This results in an average equity value of approximately €64.1 million. The target price is €3.20, with a BUY rating and MEDIUM risk.

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