De’Longhi, a coffee machine manufacturer, could see 24% growth. Where does Freedom see the potential?

Shares of Italian coffee machine manufacturer De’Longhi could rise by nearly a quarter, according to an estimate by Freedom Broker. Analysts are betting on the rapidly growing coffee shop equipment business and a recovery in home appliance sales.

Freedom Broker recommended buying De’Longhi shares. According to Freedom’s estimate, the 12-month target price for the company’s stock is $54—nearly 24.5% higher than the closing price on October 30.

De’Longhi manufactures home coffee machines under its own brand, as well as professional equipment from Eversys and La Marzocco, and kitchen and other home appliances. The coffee division accounted for 68.6% of the group’s revenue in 2025. The company’s largest market is Europe, which accounted for 61.8% of sales.

Professional coffee machines are Freedom’s main selling point for De’Longhi. In the first half of 2026, the Professional division’s revenue grew 36.3% year-over-year to €302.8 million. Its adjusted EBITDA margin was 32%, compared with 13.5% for the Household division.

Faster growth in the professional business segment could bolster the profitability of the entire group, according to Freedom analyst Mikhail Chistyakov. Eversys is securing major orders from coffee shop chains, while both professional brands are expanding their sales in international markets. Freedom sees additional opportunities in La Marzocco’s high-end home coffee machines. De’Longhi itself forecasts that by the end of 2026, the Professional division’s revenue will exceed €600 million.

Another factor is the increase in De’Longhi’s stake in the professional division. In October, the company agreed to acquire DLI Limited’s stake for €662.5 million, increasing its ownership from 61.56% to 88.02%. “The increase in ownership will allow De’Longhi to capture the lion’s share of the profits from the professional business, the results of which are already fully reflected in the group’s financial statements,” explains Chistyakov.

Household sales are returning to growth after a weak start to the year, when retailers were reducing inventory. In the second quarter, the division’s revenue increased by 4.5% year-over-year, and by 1.2% for the first half of the year. A Freedom analyst attributes further growth to new coffee machine models, an expanded range of accessories, and brand promotion. The group’s advertising and promotion expenses for the first half of the year rose 8.4% to €199.8 million.

At the same time, weak demand for NutriBullet blenders in the U.S. is holding back sales of kitchen appliances. Among other risks, Freedom cites competition, U.S. tariffs, and exchange rate fluctuations.

For the full year 2026, De’Longhi forecasts revenue growth of approximately 5% and adjusted EBITDA in the range of €670–690 million. The upward revision to the profit forecast takes into account a duty refund of approximately €15 million.

Of the ten analysts covering the company, eight have a “buy” recommendation and two have a “hold” recommendation. The average price target is €48.9, which is 12.7% higher than the last closing price.