Italy's WIIT soars after Equita ups to 'buy' on limited US tariff exposure

Wiit SpA

23/04/2025 10:32

** Equita upgrades WIIT WIIT.MI to "buy" from "hold", citing strong business visibility, attractive valuations and limited exposure to U.S. tariffs

** Shares of the cloud computing and cyber-security service provider rise 13.3%

** Equita says the company's business model offers "visible organic trends" with nearly 90% of sales from multi-year recurring contracts and a backlog-to-revenue ratio of 1.6x

** The broker also notes a high customer loyalty with low churn rates of 2% in Italy and 4% in Germany

** "The market turmoil offers an opportunity to return to buy on WIIT", Equita says, citing the stock's weak performance since its downgrade in August 2024

** It notes WIIT operates exclusively in Europe and is not directly affected by tariffs, with potential indirect impacts mitigated by company's diversified customer base and final markets

** It cuts target price to 22 euros ($25.15) from 24 euros

($1 = 0.8746 euros)

(Reporting by Laura Contemori)

((laura.contemori@thomsonreuters.com))