(Telestock) – Equity he lowered to 5 euros per share (-4%) the target price on unlimiteda banking group founded by Corrado Passera and listed on Euronext STAR Milan. The broker has updated its 2024/26 estimates mainly to reflect: (i) a more cautious outlook at NII level (-5% on average); (ii) a reduction in operating costs (-5% on average); (iii) an increase in the cost of risk, in light of the indications that have emerged in recent quarters. 2024/26 net profit estimates at 48/63/80 million euros (from 55/70/0 million euros previously).
“Pending the presentation of the industrial plan at the end of the year and considering (i) the non-optimal market context for the business model; (ii) the progressive replacement of the NPL business with the asset-based financing business (in the ramp-up phase and not yet fully operational); and (iii) valuations close to our fair value, we confirm the Hold rating“, the research reads.