| In the half-yearly report as of June 30th, 2023, Nusco Group reported net revenues of € 24.60 million, showing favorable developments in the strategy of diversification and customization of Nusco’s commercial offerings, aimed at improving quality standards for Italian customers and at the recovery of the construction sector in the Romanian market. EBITDA for the period amounted to € 2.92 million, generated respectively for € 2.12 milion from BU Windows and for € 0.80 milion from BU Doors; EBIT, after D&A for € 0.84 mln, is equal to € 2.07 million. Net Income is positive at € 1.06 million. In light of the published 1H23A half-year results, we have slightly updated our estimates for the current year, while our estimates for the coming years remain substantially unchanged. In particular, we now estimate FY23E revenues of € 53.00 million, and an EBITDA of € 6.35 million, corresponding to a margin of 12.0%. In the following years, we expect revenues to rise to € 66.30 million (CAGR 22A – 25E: 9.2%) in FY25E, with EBITDA equal to € 9.00 million (corresponding to a margin of 13.6%), up compared to € 5.20 million in FY22A (corresponding to an EBITDA Margin of 10.2%). We conducted our valuation of the equity value of Nusco based on the DCF method. The DCF method (including for prudential purposes, a specific risk of 2.5% in the calculation of the WACC) returned an equity value of €58.6 million. The target price is therefore € 3.15 (prev. € 3.15), with a BUY rating and MEDIUM risk |