Because Fincantieri heats up a little on the stock market with the Navy contract for submarines
What happens to the Fincantieri stock on the stock market and what analysts say about the Navy contract for submarines
A positive day yesterday for Fincantieri on the Stock Exchange.
In the first few minutes of trading on 5 January, the stock moved against the trend, marking a rise of 1.8% to 0.56 euros, in a session that began with a negative sign for the Milanese market.
The indiscretion collected by Sole 24 Ore has triggered the purchases on Fincantieri , according to which in the coming weeks the contract between the Trieste group and the Italian Navy will be finalized for the construction of four U-212 Nfs submarines deriving from the Todaro class . The total value of the order is 2.3 billion. The first tranche will have a value of 1.35 billion and will concern the construction of the first two submarines.
“The news – if confirmed – is positive for the title” according to Equita even if “partially discounted”.
In fact, the contract was already known in mid-December , according to a notice published on 9 December in the official EU tender database on the basis of which the Italian Ministry of Defense had notified the contract to Fincantieri.
All the details.
THE FINCANTIERI EXCHANGE RALLY
Yesterday the shares of the shipbuilding group rose by 1.26% to € 0.5615, with a maximum reached at € 0.568, when the Ftse Mib loses 0.06% and the Ftse All Share 0.08% .
The exchanges were quite lively: 2.5 million shares changed hands, against an average of 4.2 million shares in the last thirty days for the entire session.
As Teleborsa writes, “on a comparative level on a weekly basis, the trend of the main shipbuilding complex in the world shows a more marked trend than the trendline of the FTSE Italia All-Share. This demonstrates the greater propensity to buy by investors towards Fincantieri compared to the index. The medium-term scenario of Fincantieri confirms the negative trend of the curve. However, the analysis of the short chart shows an easing of the bearish phase in preparation for a rise towards the first resistance area seen at 0.5695 Euro. Support at 0.553. Any positive elements support the achievement of a new top seen in the 0.586 "area.
ANTICIPATION OF THE SUN 24 HOURS
The group from Trieste therefore went against the trend. An indiscretion from the Sole 24 Ore about the finalization of the contract with the Navy was the reason why the Fincantieri stock splashed on the stock market. "The contract should be signed within a few weeks in order to close the circle at the latest by the end of the first quarter – wrote the economic-financial newspaper – It is the last junction of a path that, as is well known, has in the first instance, the double parliamentary go-ahead for the ministerial decree scheme containing the approval of the multi-year program for the development, acquisition and ten-year technical-logistical support of the first two U212 submarines deriving from the Todaro class, which was then followed by the congruity opinion of the Court of Auditors and the two ministerial conventions that guaranteed the financial coverage of all programs of the armed forces ".
THE CONTRACT FOR U212 NFS SUBMARINES
As we said at the beginning, in reality the formalization of the contract for Fincantieri came in mid-December in a European key and under the umbrella of the Occar (the Joint Organization for Cooperation in Arms Matters), through a notice published by Italian Ministry of Defense on the database of EU tenders.
The contract notified to Fincantieri has a value of 1.35 billion euros for the construction of the first two U212 NFS (Near Future Submarine), providing for a total of four submarines for the Italian Navy, alongside the four units already in service built by the group led by Giuseppe Bono under license from the German ThyssenKrupp Marine Systems.
THE VALUE OF THE ORDER
The total value of the order is 2.3 billion euros.
Of the first tranche worth 1.35 billion euros, "806 million come from the 2018 budget and 544 million from the Fund for the financing of investments and infrastructure development of the country", established in 2017, subsequently refinanced and also known as the "fund ”, Il Sole 24 Ore specified.
THE FAIR COMMENT
So the news of the submarine order of the Italian Navy is not new. As Equita points out. In fact, the analysts of the Milanese SIM recall how financial coverage by the Italian government was found at the beginning of 2020. Furthermore, during the last conference call, the company had already indicated that it was close to signing the contract.
"However, this is an important contract capable of improving visibility on the Naval segment (in 2019 1.5 billion in turnover or around 26% of the group's turnover) which has margins above the average of Fincantieri and a dynamic in working capital. more favorable ", underlines Equita that on the Fincantieri share has a Hold rating (hold in portfolio) with a target price of 0.57 euros".
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/smartcity/perche-fincantieri-si-scalda-pochino-in-borsa-col-contratto-della-marina-per-i-sottomarini/ on Wed, 06 Jan 2021 07:40:00 +0000.