Dovalue shares up as much as 5.5%, company to buy Germany's Coeo

Dovalue shares up as much as 5.5%, company to buy Germany's Coeo

July 02, 2025

Dovalue S.p.A. (BIT: DOV) has seen a significant increase in its share price, rising by as much as 5.5% in recent trading sessions. This surge comes after the company announced its plans to acquire 100% of the share capital of Germany's Coeo Group GmbH for a total consideration of EUR350 million, with an additional EUR40 million earn-out component [3].

The acquisition is a strategic move for Dovalue, aiming to strengthen its position as a pan-European credit management platform based on technology and artificial intelligence. The company expects the deal to be finalized within the next few months, pending the achievement of specific financial targets. This acquisition will also bring in the management team of Coeo, further bolstering Dovalue's capabilities.

Dovalue's share price rise is not isolated; it is part of a broader trend where smaller-cap stocks, often less covered by the market, see more opportunities for mispricing due to the lack of public information. The company's recent performance has been promising, with its share price climbing despite being relatively expensive based on its price-to-earnings (PE) ratio. Dovalue's PE ratio of 49.32x is significantly higher than the industry average of 15.65x, indicating that the stock may be overvalued [1].

Despite the high PE ratio, Dovalue's future outlook is positive. The company is expected to see a significant increase in earnings and revenue growth over the next couple of years, with profit expected to more than double. This positive outlook has driven investor interest, contributing to the recent share price increase [1].

However, the current market conditions suggest that the price may be overvalued. The high volatility of Dovalue's shares, indicated by its high beta, means that the price can be more susceptible to market fluctuations. Investors should be cautious and monitor the company's fundamentals closely before making any investment decisions.

References:

[1] https://simplywall.st/stocks/it/commercial-services/bit-dov/dovalue-shares/news/is-now-an-opportune-moment-to-examine-dovalue-spa-bitdov
[2] https://en.coinotag.com/cardano-ada-shows-potential-for-1-target-amid-price-gains-and-investor-caution/
[3] https://www.marketscreener.com/news/dovalue-finalizes-acquisition-of-coeo-for-eur350-million-ce7c5cdedb88f321