Why Maire Tecnimont S.p.A. (BIT:MT) Could Be Worth Watching

Maire Tecnimont S.p.A. (BIT:MT), which is in the construction business, and is based in Italy, received a lot of attention from a substantial price increase on the BIT over the last few months. As a stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. But what if there is still an opportunity to buy? Let’s take a look at Maire Tecnimont’s outlook and value based on the most recent financial data to see if the opportunity still exists.

See our latest analysis for Maire Tecnimont

Is Maire Tecnimont still cheap?

Good news, investors! Maire Tecnimont is still a bargain right now. My valuation model shows that the intrinsic value for the stock is €2.64, but it is currently trading at €1.74 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, Maire Tecnimont’s share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.

What does the future of Maire Tecnimont look like?

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. However, with an extremely negative double-digit change in profit expected over the next couple of years, near-term growth is certainly not a driver of a buy decision. It seems like high uncertainty is on the cards for Maire Tecnimont, at least in the near future.

What this means for you:

Are you a shareholder? Although MT is currently undervalued, the negative outlook does bring on some uncertainty, which equates to higher risk. Consider whether you want to increase your portfolio exposure to MT, or whether diversifying into another stock may be a better move for your total risk and return.

Are you a potential investor? If you’ve been keeping an eye on MT for a while, but hesitant on making the leap, I recommend you dig deeper into the stock. Given its current undervaluation, now is a great time to make a decision. But keep in mind the risks that come with negative growth prospects in the future.

Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Maire Tecnimont. You can find everything you need to know about Maire Tecnimont in the latest infographic research report. If you are no longer interested in Maire Tecnimont, you can use our free platform to see my list of over 50 other stocks with a high growth potential.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

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