Shopping at Fincantieri following the agreements in Croatia

(Il Sole 24 Ore Radiocor) - Fincantieri is in the spotlight on the Milan Stock Exchange, buoyed by the signing of two Memoranda of Understanding with the Croatian shipyards Brodotrogir Cruise and Iskra Shipyard. The agreements form part of the group’s participation in the Croatian Ministry of Defence’s programme for the acquisition of two multi-role corvettes and set out a framework for industrial collaboration in design, engineering and shipbuilding activities. The aim is to involve the local supply chain, increasing the domestic content of the project and strengthening Fincantieri’s proposal through the transfer of know-how.

According to Intermonte’s analysts, the news is fully in line with the group’s strategy in the naval defence sector. “Building local industrial partnerships increases the likelihood of converting the order pipeline in markets where industrial sovereignty and local production are now decisive factors,” the experts note, emphasising that Croatia represents an increasingly attractive market for the group. According to the securities firm, “these Memoranda of Understanding should be seen as a decisive step towards winning tenders”. The analysts add that they welcome “the continued expansion of the European defence sales pipeline, with increasingly concrete incremental opportunities in southern Europe”, whilst reiterating that “the real catalyst for the share remains the conversion of the order pipeline in the naval segment over the coming months”. Meanwhile, Intermonte confirms its “Outperform” rating on the share, with a target price of €17.8.

Fincantieri shares have been the subject of heavy buying in recent days, triggered by the announcement of acquisitions in the diving sector, a move welcomed by the market, which has enabled the share price to recover ground from the lows of around €9.8 reached on 29 June. However, despite the recent rebound, the year-to-date performance remains negative, with a fall of around 33 per cent.