(CercleFinance.com) – Bank of America maintained its buy recommendation on Euronext on Friday, which it matches with a target price of 118 euros, after annual results described as ‘correct’.
In a reaction note, the broker points out that the performance achieved by the stock market operator last year was modestly above the consensus, while noting that its synergy target for 2024 has been revised upwards by 100 to 115 million euros.
According to the broker, the good news comes mainly from the integration of Borsa Italiana, which he considers to be the key element of the file.
‘The acquisition of Borsa Italiana, when completed, will allow Euronext to become a better company from our point of view,’ BofA writes in the note.
The professional considers that Euronext is already the undisputed leader in IPOs and spot transactions in Europe, but points out that from the end of 2024 it will benefit from an integrated derivatives platform that it will be able to grow to his turn.
“We continue to believe that Euronext is undervalued, with market sentiment ignoring the positive effects of integration,” he continued.
“With a stock market trading at 12.5 times expected earnings next year, a significant discount to its peers, we believe the stock offers clear potential for value creation,” concludes BofA.
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