Unicredit: JPMorgan upgrades stock
(CercleFinance.com) - On Tuesday JPMorgan upgraded its rating on UniCredit shares to "overweight" (from "neutral"), increasing its target price for them from 13.
5 euros to 15 euros, mainly due to valuation issues.
In its morning comments, the broker believes that the stock has a "very attractive" risk/reward profile based on a 2024 P/E of 7.4x, which it says already incorporates the scenario of a recession.
However, the analyst sees upside potential of around 50% if the Italian banking group manages to post earnings of 5.8 billion euros (excluding Russia) by 2024.
JPMorgan also believes that the market is underestimating the likelihood of M&A deals, arguing that a possible takeover of Banco BPM would be particularly attractive, with an accretive effect of 34%, even if the offer is entirely cash-based.
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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.
5 euros to 15 euros, mainly due to valuation issues.
In its morning comments, the broker believes that the stock has a "very attractive" risk/reward profile based on a 2024 P/E of 7.4x, which it says already incorporates the scenario of a recession.
However, the analyst sees upside potential of around 50% if the Italian banking group manages to post earnings of 5.8 billion euros (excluding Russia) by 2024.
JPMorgan also believes that the market is underestimating the likelihood of M&A deals, arguing that a possible takeover of Banco BPM would be particularly attractive, with an accretive effect of 34%, even if the offer is entirely cash-based.
Copyright (c) 2022 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.