Intesa Sanpaolo has raised its target price for Centrale del Latte d’Italia – a company listed on Euronext STAR Milan and controlled by NewPrinces – from 6 euros to 6.40 euros per share, and has confirmed its ‘Buy’ recommendation for the share in view of its 58 per cent upside potential.
The analysts note that, following a 2025 financial year characterised by stable turnover and improving profitability, Centrale del Latte d’Italia began the 2026 financial year against a more favourable backdrop for raw milk costs. This led to a significant widening of the gross margin in the first half of 2026, which partially offset the impact of lower selling prices on turnover. Turnover in 2026 is expected to rise by 4.3 per cent, taking into account the deflationary scenario of the first half of the year.
Current estimates project an average annual growth rate (CAGR) in revenue of 1 per cent for the period 2027–2028 and an EBITDA margin of 8.5 per cent for the financial year 2028.
“We maintain our positive view of Centrale del Latte d’Italia, as the improvement in margins, strong cash flow and ongoing debt reduction more than offset the current weakness in revenue, which is attributable to the fall in milk prices,” the analysis states.
