Barclays ups Italy's De Longhi to 'equalweight' on tariff risk easing

De Longhi SpA

29/05/2025 09:21

** Barclays upgrades Italy's De Longhi DLG.MI to "equal weight" from "underweight", citing better handling of tariff risks than previously expected

** "De Longhi is in a far better place than in 2019 to mitigate tariff impacts", Barclays says

** The broker notes De Longhi revised down its expected tariff impact in 2025 on earnings before interest, taxes, depreciation, and amortization (EBITDA) to 15 million euros  ($16.91 million)from 15-20 million euros, despite worsening tariffs

** Barclays notes that also the company is accelerating production relocation away from China to Indonesia and other parts of Southeast Asia, aiming to relocate about 95% of U.S. product manufacturing by summer 2025

** Barclays raises De Longhi's EBITDA margin forecast for 2025 from 14% to 16% and its price target by c. 30% to 30 euros, but remains cautious due to tariff impact uncertainties

** Out of 10 analysts that cover De'Longhi, seven rate the stock "strong buy" or "buy" and ​three rate "hold" - LSEG data

** Shares of the espresso machine manufacturer rise 3.3% at 08:18 GMT, paring gains after climbing as much as 9.1%

($1 = 0.8873 euros)

 (Reporting by Laura Contemori)

 ((Laura.contemori@thomsonreuters.com))