(Tiper Stock Exchange) – Intesa Sanpaolo has lowered to 7.9 euros per share (from 8.9 euros) the target price on unlimiteda banking group founded by Corrado Passera and listed on Euronext STAR Milan, and confirmed the recommendation to “Buy“. Analysts write that illimity recorded below-expected results in the second quarter of 2023, due to higher-than-expected adjustments on purchased non-performing loans; in addition, volume growth was robust, quickly consuming excess capital.
Management confirmed guidance on net income for fiscal 2023, but analysts expect uncertainties in the NPL business that make the “challenging” company guidance.
The potential introduction of the government’s NPL proposal “could slow down the process of closing distressed positionswhich would be necessary for illimity to reach its 2023 net profit guidance”, reads the research.
Intesa Sanpaolo has cut adjusted EPS estimates by 12% on 2023, 7% on 2024 and 2% on 2025, on lower revenues and higher operating costs.