Shares of Gens Aurea SpA (BIT: OROX) advanced 3.14% to €9.85 on Thursday after Jefferies initiated coverage with a Buy rating and a €15 price target.
The Italian gold-recycling company, which operates more than 530 stores across five European countries, benefits from higher gold prices as consumers increasingly sell jewelry and scrap metal. Italy remains its largest market. Jefferies estimates Gens Aurea hedges over 80% of its gold acquisitions to mitigate exposure to bullion price volatility.
Gold sold per store rose from 12 kilograms in 2023 to 20 kilograms in 2025, reflecting improved productivity. The company plans to expand its store network from 530 to approximately 850 locations by 2029.
Jefferies projects revenue will climb from €836 million in 2025 to about €2 billion by 2028, with EBITDA expected to increase from roughly €105 million to over €300 million over the same period. Return on invested capital is forecast to remain above 45% through the cycle.
The FTSE MIB index rose around 0.4% on the day, providing additional support to the broader market backdrop.
