Datalogic (AO) | Hold | Hydra exceeds a 90% stake, delisting in sight

Research evidence excerpt

Datalogic (AO) | Hold | Hydra exceeds a 90% stake, delisting in sight

Datalogic Hold | Target Price: EUR5.80

Company description Management

Founded in 1972, Datalogic is one of the most important global producers of Romano Volta, Chairman

automatic data capture and process automation solutions. Its product range Valentina Volta, CEO

includes bar code readers, mobile computers, RFID, sensors for detection, Alessandro d'Aniello, CFO

measurement and safety, vision and laser marking systems. As of 2017 the Key shareholders

company has implemented a structure focused on its four key verticals (Retail, Free float 26.95%

Manufacturing, Transportation & Logistics, Healthcare), with the purpose to Hydra S.p.A. 64.84%

boost commercial penetration. Treasury shares 8.21%

Investment case Valuation methodology

From the IPO up until 2018, Datalogic prospered, thanks to We derive a DCF-based TP of EUR5.8. We assume a WACC of

innovation, well-established relationships with customers, and 9.8%, TG of 2.5%, and a terminal EBIT margin of 7%.

supportive growth in its reference market. In that period, Multiples on 2026/27E, incorporating 10% of treasury shares, are

Datalogic built up a solid long-term track record. ROCE and cash still affordable. Our EUR5.8 TP implies 13x EV/EBIT, 17x P/E

conversion were supportive. 2026E.

In 2019 and 2020, it faced a revenue decline and margin erosion. Risks to our rating

Cost control continued to be strong. In 2021 revenues were Worse-than-expected momentum from new products, weaker

recovering. Shortage of components dented margins in 2022, pricing power, or cost control. Gross margin pressure.

while in 2023 sharp destocking and a cyclical decline took a Adverse trends in bricks & mortar retail, lack of momentum from