China smartphone shipments slumped in June on inventory overhang: Jefferies
Investing.com - BofA Securities downgraded Amplifon (BIT:AMPF) SpA (BIT:AMP (OTC:AMLTF)) (OTC:AMFPF) from Buy to Neutral on Thursday, while significantly reducing its price target to EUR16.00 from EUR29.00.
The hearing aid retailer faces reduced growth expectations, with BofA lowering its 2025 earnings per share forecast by 16% and its 2026-2027 estimates by 15% each, citing "low visibility on market growth."
BofA now projects a 2025-2027 sales compound annual growth rate of 5.0% at constant exchange rates, comprising 3% organic growth and 2% from mergers and acquisitions, alongside an EBITDA margin expansion of 150 basis points during this period.
The investment bank reduced its target price-to-earnings multiple for Amplifon from 25x to 17x and its target EBITDA multiple from 12x to 9x, both representing discounts to the European medical technology sector due to Amplifon’s "lower growth/returns outlook versus the sector."
Despite noting "mid-term upside potential" in either earnings or valuation given the company’s low multiples, BofA characterized Amplifon’s growth and returns profile as "uncertain due to market lumpiness."
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.