Intesa Sanpaolo runs: buy on the fly now, dividend is stellar

An excellent start to the week for Intesa Sanpaolo which also today manages to catalyze purchases, climbing for the fourth consecutive session.

Intesa Sanpaolo up for the fourth session in a row

After closing last Friday with a progress of almost one and a half percentage points, the stock manages to do even better today.

In the last few minutes, Intesa Sanpaolo presents itself at € 1.7652, with a 2.12% advantage and over 54 million shares changed hands so far, against the average of the last 30 days of approximately 128 million.

The stock continues to push in the wake of the second quarter accounts released last Friday.

Intesa Sanpaolo: 2nd quarter accounts

Intesa Sanpaolo closed the period in question with a net profit of € 1.33 billion, above expectations set at € 1.03 billion, while revenues amounted to € 5.35 billion, against the forecast € 5.09 billion.

Net commissions fell by 4.8% to € 2.361 billion, while net operating income rose 3.3% to € 5.347 billion.

Overall positive indications on the capital side, with Common Equity Tier 1 at 12.5%, down by 110 basis points quarter on quarter.

The decline is largely attributable to the full impact of the € 3.4 billion buyback, while organic capital generation almost entirely offset the impacts from other factors.

The accounts of Intesa Sanpaolo were welcomed by the market which continues to reward the stock today with numerous purchases.

Intesa Sanpaolo: Equita SIM comments on the quarterly report

The opinion of the analysts was also positive, starting with those of Equita SIM who spoke of a quarterly report with data well above expectations, thanks to the positive surprise on the revenue side and lower cost of risk.

Provisions for credit losses include 292 million euros of specific provisions for exposures to Russia / Ukraine, net of which the cost of the underlying risk would have been 37 basis points.

As for the 2022 outlook, the guidance provided with the results for the first quarter of this year was reiterated.

From the conference call it emerged that the updated guidance on 2022 will arrive in November when the evolution of the macro scenario will be clearer. The increase in rates should support the interest margin which should at least offset any slowdown in fees and an increase in the cost of risk.

2023 will see a strong increase in the contribution from net interest income and Intesa Sanpaolo has confirmed its willingness to pay the second tranche of the 1.7 billion euro buyback, but a final decision will be taken once there is greater visibility on the macro context .

The amount of 1.1 billion euros for the interim dividend, whose payment is expected in November, must be considered as a minimum level.

Intesa Sanpaolo: Equita adjusts estimates. Dividend is fabulous

Equita SIM analysts raised the net profit estimates for the current year by 4% to 3.9 billion euros, while they only slightly adjusted those for 2023-2025, to reflect higher net interest income offset by lower commissions.

The Milanese SIM reiterated the “buy” recommendation on Intesa Sanpaolo which, according to analysts, is characterized as a resilient profile to face the current market context.

The stock boasts a dividend yield of over 13%, with an unchanged target price of € 2.7.

Intesa Sanpaolo: UBS raises its target price

The UBS colleagues reviewed Intesa Sanpaolo’s assessment and, on the one hand, reiterated the “buy” rating and, on the other, raised the target price from 2.2 to 2.4 euros.

The Swiss bank believes the stock remains attractive in terms of valuation, but at the same time directly exposed to macro themes.

Intesa Sanpaolo: the view of Bca Akros and Deutsche Bank

Also bullish is the view of Banca Akros which recommends buying Intesa Sanpaolo with a fair value of 2.5 euros, in light of the better than expected quarterly report and the strong capital position.

Deutsche Bank is also added to the chorus of optimists, which has a “buy” rating on Intesa Sanpaolo, with a target price of € 2.9, a value that implies an upside potential of over 64% compared to the current prices on Piazza Affari.

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Intesa Sanpaolo runs: buy on the fly now, dividend is stellar


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