(Il Sole 24 Ore Radiocor) - Milano, 5 mag - Brembo shares were sharply higher in Milan trade, after the Italian brake manufacturer announced its patented Sensify intelligent braking platform had entered large-scale series production for a "leading global manufacturer" while it had also signed new Sensify contracts enabling the supply of "hundreds of thousands" of units per year.

At 0910 GMT, Brembo shares were up 6.13% to 8.48 euros, outperforming the benchmark FTSE MIB, which was 1.94% higher at 48,399.35 points.

Analysts at the broker Equita said that the news of the launch of the braking platform is later than it had originally expected, "but it's important that the product will be soon available on the market to be able to gauge end-customer feedback and quantify its potential upside." While Brembo hasn't supplied details on the economics of the Sensify business, Equita had estimated in 2023 that the braking platform could imply revenue of 1,000 euros per vehicle compared to the 300-400 for sales of car brake discs and calipers, while also allowing for an EBITDA margin of about 20% versus the average 17% registered by the group in the previous three years and entailing a lower capital intensity given that it is a business tied to software. Equita anticipates the effect of Sensify on Brembo's results will be "modest" in 2026 and "more visibile" starting in 2027.

Equita notes that Brembo is one of the few auto components manufacturers that, while not immune from risks tied to the current macroeconomic and geopolitical backdrop penalizing the auto sector in particular, boasts company-specific drivers that improves visibility. In addition to Sensify, another example is coated brake discs, which enjoy above-average prices and margins and will become mandatory starting in November for cars sold in Europe that are build on new platforms, Equita notes.

Analysts at Banca Akros also see the news of the Sensify launch as positive, although they believe that its impact on Brembo's accounts won't be particularly significant for a few years, given that the adoption of Sensify is expected to take place gradually. Banca Akros sees the target of equipping "hundreds of thousands" of vehicles with the braking platform as achievable, and likely to be exceeded in the long-term, given that Brembo's production capacity is estimated in.

millions of units.

(RADIOCOR) 05-05-26 11:27:20 (0292) 5 NNNN