De'Longhi: shares rise as broker upgrades to 'buy'
(CercleFinance.com) - Shares in Italian appliance maker De'Longhi are up over 2% on Friday as a broker upgrade highlighted the appeal of the maker of espresso machines during the current pandemic.
Berenberg analysts upgraded De'Longhi to "buy" from "hold," and more than doubled their target price to 35 euros from 16.5 euros, seeing further upside despite the shares' 40% rally in 2020.
"After a couple of years of margin pressure, muted group sales growth and a de-rating, the Covid-19 pandemic has marked an inflection point for De'Longhi, allowing for significant growth across all product categories and operating leverage", they said.
"While we do not expect the level of growth in 2020 to be replicated, we believe that De'Longhi may experience a tailwind for the next one to two years, as consumers should continue to re-invest in household items", Berenberg added.
At 12.15, De'Longhi shares, which have jumped more than 69% over the past 12 months, were up 2.2%.
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