| In the Consolidated Financial Statements as at December 31, 2022, Portobello confirmed its growth trend by recording a Value of Production of € 130.48 million, up 48.0% on its 2021 result of € 88.18 million, thanks to the double-digit growth of all of its Business Units, despite the negative macroeconomic scenario. EBITDA for the period amounted to € 18.16 million, up from € 16.52 million in FY21A, and with a margin on revenues of 13.9%. EBIT, after depreciation, amortization and depreciation of € 4.68 million, came in equal to € 13.48 million, versus € 13.89 million in the previous year, with an EBIT Margin of 10.3%, while Net Income was also positive for € 7.66 million. On the balance sheet, NFP showed a deterioration from € 17.30 million to € 42.43 million in FY22A. In light of the results published in the annual report for FY22A, we have adjusted our estimates for both the current year and the coming years. In particular, we estimate an FY23E Value of Production of € 180.00 million and an EBITDA of € 27.00 million, corresponding to a margin of 15.0%. In the following years, we expect the Value of Production to rise to € 250.00 million (CAGR 22Y-25E: 24.2%) in FY25E, with EBITDA equal to € 48.50 million (corresponding to a margin of 19.4%), up from € 18.16 million in FY22A (corresponding to an EBITDA Margin of 13.9%). We conducted our valuation of the equity value of Portobello based on the DCF method. The DCF method (including, for prudential purposes, a specific risk of 1.5% in the calculation of the WACC) returned an equity value of € 249.3 million. The target price is therefore equal to € 71.00 (prev. €78.00), BUY rating and MEDIUM risk. |