Poltrona Frau fly to the stock market. In the early afternoon, the company's stock gained 8,16% for a value of 1,42 euro.
The prices benefited from the judgment of Mediobanca analysts who raised the recommendation on the stock from "neutral" to "outperform" with the target price going from 1,2 to 1,84 euro. The bank has updated its estimates on the group following the good results of the first quarter of 2013 and the signals indicating a further improvement.
Analysts say they are optimistic about group performance due to an internationalization of the group, to an ongoing development of emerging markets such as the United Arab Emirates, India and China; and a lower exposure to the domestic market (17% of group revenues compared to 28% in 2007). The move of the business to less cyclical sectors with more predictable revenues, thanks to the long-term relationships established with customers, also contributed to Mediobanca's decision.
Lastly, Mediobanca underlines that “the full execution of the strategy of positioning Poltrona Frau as a global brand on the international market and reducing their dependence on the domestic market should lead to further appreciation of the stock and a reduction in the valuation gap with respect to luxury brands”.
Poltrona Frau is an Italian company that operates in the furniture sector.luxury decor. Furthermore, today it supplies seats for the models of the most prestigious car manufacturers such as Ferrari and Maserati.
