(CercleFinance.com) – Mediobanca gains nearly 3% in Milan while Jefferies raises its recommendation on the stock from ‘hold’ to ‘buy’ with a price target raised from 10.6 to 12.4 euros, considering in particular that the Italian bank’s lower interest rate sensitivity may become a relative strength.
‘Mediobanca’s new business plan responds to our expectation of development, emphasizing activities with low capital absorption (wealth management) and reducing capital allocation on CIB and Consumer activities Finance’, estimates the broker.
“The regulations will enable efficiency gains in risk-weighted assets, supporting a generous payout policy with more than 30% of market capitalization returned to shareholders over fiscal years 2024-26,” he adds.
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