The average target price of LDB.MI is 5.1 and suggests 19% upside potential. Usually, this means a BUY recommendation among investment firms, or a recommendation to increase one's position in this instrument in the next 12 months. The most optimistic analyst has a target price of 5.1. This translates into 19% upside potential in the best case. On the other hand, the most pessimistic analyst has a target price of 5.0. This suggests 17% upside potential. Even the most pessimistic analyst believes there will be stock growth. 

Lindbergh S.p.A. provides maintains, repairs, and logistics solutions in Italy. The company offers spare parts delivery, return management system, personal protective equipment supply, tool testing, waste disposal, customized/on demand; and work clothing and accessories services. Lindbergh S.p.A. was founded in 2006 and is based in Pescarolo ed Uniti, Italy.

Italy

Lindbergh S.p.A.

Industrials

The company does not pay dividends at all, or it pays them sporadically. There have only been a few years with dividend payments in the past ten years. 

LDB.MI reported revenue of EUR 24mn in the last 12 months, down 10% from FY23. At the same time, the dynamics of cash flow, as measured by free cash flow (FCF), were drastically different. EPS fell 78% from FY23 to EUR 0.04.

The stock has been growing steadily in the past six months, adding 18% in total. The stock has outperformed its global peers from the same sector and industry (as shown above), surpassing them by 18ppts in total. At the same time, the stock's performance relative to its the peers from the same country and sector is different. It underperformed these peers by 3ppts over six months and grew 28ppts faster in the past month. With respect to the stock's valuation against its peers, its overall price performance is 'fair'.

The company has reported average EBITDA margins compared to its global peers in recent years. EBITDA margin amounted to 17.5% in the last 12 months, up from 13.0% in FY22. 

Historically, LDB.MI has reported weak net margins compared to its global peers. Specifically, in the last 12 months, this metric equalled 1.4%, down from 4.4% in FY22. 

Lindbergh S.p.A. reported a return on equity (RoE) of 4.5% in the last 12 months, down from 5.9% in FY23. 

Another important profitability metric, return on assets (RoA), amounted to 1.3% in the last 12 months, a decrease from 1.7% in FY23. 

In the last 12 months, the return on capital employed (RoCE) declined to 2.4%, below the peers. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been 1.6 in the past several years. This ratio implies a good shareholder value creation. 

The institutional, legal, and compliance risks associated with the company's country are minimal. In combination with stringent business standards, shareholder rights are very highly protected.

LDB.MI has very poor trading liquidity. It will take considerable time for the average private investor to sell a common position under normal market conditions. Liquidity is relatively stable and becomes extremely unfavourable on the days with the lowest activity. The trading volume mostly stays the same even under highly turbulent market conditions. Another factor to consider is the substantial number of days with zero trading volumes, i.e., without any ability to sell a position. The stock has a tiny market capitalisation, which usually makes its trading liquidity erratic and unpredictable. 

No other major risks have been identified.

The risk of default is moderate. We note strong debt servicing capacity and adequate interest coverage, among the positive credit factors. Among the negative credit factors, we point to weak positions in its industry, slow historical revenue growth, and poor working capital management.

In highly turbulent market conditions, LDB.MI is not overly volatile. In other words, the stock will fall less than the index in times of extreme market volatility or shocking company news. Standalone, the worst-day losses (less than 1% of the time) will likely be low. 

In normal market circumstances, LDB.MI is as volatile as an index. Put differently, without outstanding market volatility or shocking company news, the stock's price will move with the index. The stock's losses on its worst days (less than 1-5% of the time) will range from very low to negligible. 

Based on key historical and expected multiples, the stock is greatly overvalued relative to its peers. In particular, the stock is overpriced on P/E, 'expensive' on EV/EBITDA, overvalued on P/FCF. 

Lindbergh S.p.A.

€ 4.06

3

Lindbergh S.p.A.

€ 4.06

3

Risk factor

Profitability factor

Risk / Profitability

Risk factor

Profitability factor

€ 4.06

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