Piraeus Securities is initiating coverage of Viohalco, setting a target price of €24 and assigning an “Outperform” rating, with the upside potential standing at 36%.
As it notes, Viohalco is an attractive choice in the industrial sector, as it operates in markets with structural growth prospects, which are reinforced by major trends such as the energy transition, digitalization, sustainability, and urbanization.
Viohalco, headquartered in Belgium and listed on Euronext Brussels and Euronext Athens, is a holding company of metal processing businesses. Its industrial activity includes six main sectors, among others aluminum, copper, cables, steel pipes, and steel. At the same time, it has a significant presence in real estate through Noval Property, with the value of its properties standing at approximately €0.7 billion.
In the investment story, Piraeus Securities highlights the exposure to markets with steadily increasing demand, as well as the Value-over-Volume strategy, which aims to strengthen profit margins and cash flows.
At the same time, it describes Viohalco’s risk-return profile as attractive, thanks to the diversification of its activities and the prospects for increasing dividend yields. It estimates that the holding will have approximately €270 million in cash available at the end of 2026.
In terms of figures, the brokerage forecasts that the group’s adjusted EBITDA will exceed €1 billion in the medium term and €1.3 billion over a longer-term horizon. At the same time, it forecasts EPS growth at an average annual rate of 17% through 2030, while free cash flows are estimated to reach €700 million in 2030.
For the 2027-2030 period, Piraeus Securities expects total dividend distributions of €500 million to Viohalco’s shareholders.