Investing.com -- De’ Longhi S.p.A. (BIT:DLG) shares rose 4.5% after Goldman Sachs initiated coverage of the Italian coffee machine manufacturer with a Buy rating and a 12-month price target of EUR51, implying approximately 35% upside.
Goldman Sachs analysts highlighted De’ Longhi’s position as a leading coffee machine manufacturer, with approximately 70% of group sales generated from coffee machines as of the first quarter 2026 estimates, including roughly 50% from household machines and 18% from professional equipment. The company also operates a portfolio of small domestic appliances across seven brands.
The investment case centers on De’ Longhi’s exposure to the growing espresso-based coffee market. Global coffee consumption increased by approximately 70% between 2003 and 2023, while espresso consumption grew at a 9.6% compound annual growth rate, significantly outpacing filtered coffee growth of 1% over the same period.
Goldman Sachs noted that De’ Longhi has expanded its presence in the professional coffee segment through acquisitions, taking majority control of Eversys in 2021 and La Marzocco in 2023. The firm expects professional coffee growth to remain strong, supported by accessories, grinders, and luxury home machines, with further growth potential from increasing penetration in the US and China.
The analysts forecast approximately 13.7% compound annual growth in the professional segment over 2025-2030, with their 2026 and 2027 revenue forecasts 20 basis points and 60 basis points above company-compiled consensus, respectively.
Goldman Sachs also expects EBITDA to exceed consensus estimates, with their 2026 and 2027 projections 1.6% and 4.2% above consensus, respectively, driven by mix shift toward professional coffee, stronger operating leverage, and lower commodity and tariff headwinds than anticipated.