Fincantieri: The Upside Has Started, Albeit Slowly

Wolf Report Investing Group Leader Follow Summary Fincantieri is upgraded to 'Buy' with a €13.5/share PT, reflecting improved 2Q '26 fundamentals and attractive risk/reward at current valuation. 2Q26 results showed double-digit EBITDA growth, margin expansion (+80bps), and backlog nearing €74B, supporting forward earnings visibility despite a 60% YoY order intake drop. Valuation remains disciplined at sub-20x P/E; upside potential now 8–10% to PT, with further gains possible if backlog conversion and margin trends persist. Dividend reinstatement is possible but not yet confirmed; lack of yield remains a risk, offset by strong operational leverage and sector positioning. Looking for more investing ideas like this one? Get them exclusively at Wolf of Value. Learn More » pinciniphoto/iStock Editorial via Getty Images I've been covering Fincantieri ( FNCNF ) for over a year at this point. The company is an attractive Italian shipbuilder, but one that, due to its defense exposure, traded relatively high and inflated during the past year and This article was written by Wolf Report 35.42K Followers Follow Wolf Report is a senior analyst and private portfolio manager with over 10 years of generating value ideas in European and North American markets, and the owner of Wolf of Value, a service focusing on international dividend-paying value investments.He further covers the markets of Scandinavia, Germany, France, UK, Italy, Spain, Portugal and Eastern Europe in search of reasonably valued stock ideas. Analyst’s Disclosure: I/we have a beneficial long position in the shares of FNCNF either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. While this article may sound like financial advice, please observe that the author is not a CFA or in any way licensed to give financial advice. It may be structured as such, but it is not financial advice. Investors are required and expected to do their own due diligence and research prior to any investment. Short-term trading, options trading/investment and futures trading are potentially extremely risky investment styles. They generally are not appropriate for someone with limited capital, limited investment experience, or a lack of understanding for the necessary risk tolerance involved. I own the European/Scandinavian tickers (not the ADRs) of all European/Scandinavian companies listed in my articles. I own the Canadian tickers of all Canadian stocks I write about. Please note that investing in European/Non-US stocks comes with withholding tax risks specific to the company's domicile as well as your personal situation. Investors should always consult a tax professional as to the overall impact of dividend withholding taxes and ways to mitigate these. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.