Let’s call it a transition year

Research evidence excerpt

Let’s call it a transition year

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Technogym

Initiating Coverage: NEUTRAL | PO: 16.00 EUR | Price: 14.75 EUR

Initiate at Neutral 16 July 2026

We initiate coverage of fitness equipment brand/manufacturer Technogym (TG) with a Equity

Neutral rating. In our view, i) the VA consensus only partly factors in the likely input cost

inflation this year and next. We expect the FY26 EBITDA margin to fall by c.1ppt YoY Thierry Cota >> Research Analyst

(c.-45bp in the VA consensus); ii) With, on BofAE, a 15% average reported sales growth BofASE (France)

in the last five years slowing to >10% from this year (despite a higher capex/sales ratio) +33thierry.cota@bofa.com1 5365-5819

and a temporary margin pressure, the stock is unlikely to rerate from its current low 20s Ashley Wallace >>

12m fwd PE (Bloomberg). This is close to its 22-23x 10y average, and down from the Research Analyst

Merrill Lynch (Australia)

May 2026 31x PE peak. Our PO of €16 equates to a PE of 22-25x on 2026E-27E EPS. ashley.d.wallace@bofa.com

Great sales growth but lower than before JoffreyResearchBellichaAnalyst Meller >>

MLI (UK)

We expect a c.9% organic sales growth (OSG) in 2026, slowing to 8% by 2028 and stable joffrey.bellichameller@bofa.com

thereafter. This compares favourably to other consumer discretionary segments (luxury, Ioanna Ziarti >>

sporting goods) with low single digit OSG currently and no visibility on future upcycles. Research Analyst

Yet, we estimate TG will not sustain the 15% average growth seen in the last five years ioanna.ziarti@bofa.com

and will return to its 2015–2025 high single digit average trend. This is grounded on: i) a Daria Nasledysheva >>

fitness equipment industry growth in the mid to high single digits (TG to further gain Research Analyst