On Monday, UBS reaffirmed its Buy rating on Intercos SpA (ICOS:IM) stock with a steady price target of EUR18.50. The firm anticipates the company to report a robust third-quarter performance, with expected organic sales growth surpassing consensus estimates.
Intercos, a leading cosmetics manufacturer, is set to announce its Q3 earnings on November 6th after market close, and UBS projects an organic sales increase of 15.5%, which is above the Visible Alpha consensus of 14.5%.
The anticipated growth is largely attributed to the Make-up division, where UBS estimates a 17.5% rise in organic sales for the quarter. This surge is believed to be a result of the company overcoming a backlog of orders that stemmed from a cyberattack in the first quarter of the year.
The cyber incident had initially hampered production due to difficulties in raw material procurement, leaving Intercos with an order book valued at €295 million at the end of June, marking a 13% increase year-on-year.
In the Skin Care segment, UBS forecasts a 9% organic growth for the third quarter, bolstered by strong performances from Emerging Brands and Multinational customers, particularly in North America and Asia.
It's important to note that the order backlog for Skin Care at the end of June was €51 million, up 13% from the previous year. However, the analyst mentions that the Skin Care division's smaller customer base could lead to more fluctuation in order intake data.
Lastly, the impact of the cyberattack on the Hair & Body division was significantly milder. UBS predicts an organic growth of 14.5% for this sector in the upcoming quarter. This projection is supported by the resilience of the fragrance category and the accelerated growth of Hair Care, which has been propelled by the expansion of Emerging Brands.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.