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Investing.com - Berenberg initiated coverage on Safilo Group (BIT:SFLG) SpA (BIT:SFL) with a Buy rating and a price target of EUR1.62, representing 26% upside potential from current levels.
The Italian designer, manufacturer, and global distributor of eyewear products has accelerated its shift toward higher-margin home brands since 2019, according to Berenberg’s analysis.
Safilo Group has adopted an asset-light model and focused its capital expenditures primarily on maintenance during this strategic transition period.
The company is now approaching a net cash position while simultaneously expanding its profit margins and strengthening its free cash flow generation.
Berenberg based its EUR1.62 price target on a discounted cash flow (DCF) analysis of the eyewear manufacturer, which produces sunglasses, prescription frames, outdoor eyewear, goggles, and helmets.
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