(Tiper Stock Exchange) – Intermonte has raised to 21.5 euros per share (from 17.7 euros) the target price on Banca Ifisa group active in specialty finance and listed on Euronext STAR Milan, also improving the recommendation to Outperform from Neutral. The revision came after the bank released its 2022 results and improved guidance for 2023.
In fact, analysts point out that management has revised upwards the guidance on 2023 net profit from 137 to 150 million euros, as higher interest rates should support the NII given their positive correlation with factoring (85% of the loan portfolio is floating rate) and the higher expected contribution from the financial portfolio, which should more than offset the increase in the cost of funding (expected to increase from 1% in 2022 to 2.5% in 2023).
Intermonte has increased earnings per share (EPS) estimates 2023/24 by 19.2% and 16.4%, as it expects the bank to deliver solid NII-led revenues while keeping cost trends under control, enabling it to deliver a C/I ratio at around 58%. Have left the forecast on the cost of risk remained unchangedwhile reducing provisions for risks.
“The bank stands delivering solid growth in factoring and leasingdriven by inflation, thanks to the solid capital position that allows it to seize opportunities for growth in volumes – reads the research – The NPL division is showing positive results on collections, while the expected increase in the cost of funding should be manageable thanks to better returns on assets”.
The positive momentum of earnings and the almost double-digit ROTE lead Intermonte to be more positive on the stock, also thanks to the better visibility on the distribution policy.