(Finance) – Barclays has increased a 7 euros per share (from 6.70 euros, +4%) the target price on Banca Monte dei Paschi di Sienaconfirming the recommendation on the title to “Overweight“.
Analysts write that the third quarter 2024 results were stronger than expected and provide a higher baseline for fourth-quarter and next-year projections. They then raised their 2024-26 adjusted EPS estimates by 5%.
It is noted that MPS trades at a 2025 P/E of around 5xcompared to the average of European banks of approximately 8x and the average of Italian banks of approximately 7x.
Management has confirmed that by 2028 the capital creation through the use of DTA from taxes carried forward will be 1 billion eurosas stated in the business plan. This was the response to a question on the impacts of the government measures contained in the newly proposed draft budget law. Barclays still expects a small positive benefit in the near term (2025/26) to MPS from government measures (with no change through 2028, as confirmed by the company).