(Tiper Stock Exchange) – Intesa Sanpaolo has lowered the target price on the title unlimitedbanking group founded by Corrado Passera and listed on Euronext STAR Milan, a 12.2 euros for action (from 13.3 euros) and confirmed the judgement on the title to “BuyAnalysts have revised their adjusted earnings per share (EPS) estimates down to 9% for 2022, 12% for 2023 and 15% for 2024.
“Although the short-term profitability is negatively impacted by the launch of Tech initiatives and lower-than-expected Distressed Credit origination, we believe growth in Growth Credit volumes and the break-even of Tech initiatives can support medium-term profitability,” the research reads.
Current estimates indicate a ROTE by 10.9% in 2022, when the company’s profitability is penalized by the launch of Tech initiatives (b-ilty, quimmo and Hype) which should have a negative impact on pre-tax profit of 20 million euros. Starting from 2023, Intesa expects a significant reduction of these non-recurring costs, with profitability increasing to 15.2% in 2023 and 16.8% in 2024.