Intesa Sanpaolo: Oddo a buyer before strategic plan
(CercleFinance.com) - Oddo has confirmed its buy rating on the Intesa Saopaolo share, with a target price of 3.
6 euros before the group's announcement of the new strategic plan on 6 February.
The broker's analysts believe that this new plan will boost Intesa SP. At CMT, Oddo is more optimistic than the consensus regarding improvements in the group's profitability (ROE> 10%e). In addition, the attractive return to shareholders, combined with solid fundamentals, underpins its rating, analysts explain.
Oddo's estimates are more optimistic (+7% vs. consensus for 2018-20e) - both regarding the momentum of growth in commissions, cost control and particularly lower risk provisions.
Oddo explains that in the end, the group should be able to post RoE of over 10% by 2020e (i.e. +4pp vs. 2016), corresponding to a RoTE exceeding 11%, which is a level of financial profitability that no other peripheral bank could hope for.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
6 euros before the group's announcement of the new strategic plan on 6 February.
The broker's analysts believe that this new plan will boost Intesa SP. At CMT, Oddo is more optimistic than the consensus regarding improvements in the group's profitability (ROE> 10%e). In addition, the attractive return to shareholders, combined with solid fundamentals, underpins its rating, analysts explain.
Oddo's estimates are more optimistic (+7% vs. consensus for 2018-20e) - both regarding the momentum of growth in commissions, cost control and particularly lower risk provisions.
Oddo explains that in the end, the group should be able to post RoE of over 10% by 2020e (i.e. +4pp vs. 2016), corresponding to a RoTE exceeding 11%, which is a level of financial profitability that no other peripheral bank could hope for.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.