Banca Monte dei Paschi stock gets Buy rating from Deutsche Bank

Published 03/09/2025, 10:36
Banca Monte dei Paschi stock gets Buy rating from Deutsche Bank

Investing.com - Deutsche Bank has resumed coverage of Banca Monte dei Paschi di Siena SpA (BIT:BMPS) with a Buy rating and a price target of EUR9.20.

The bank’s robust 19.6% CET1 ratio and over EUR3 billion in excess capital were cited as key factors supporting the positive outlook for the Italian lender.

Deutsche Bank highlighted that BMPS is trading at a significant discount to peers, with a 2025-26 estimated P/E ratio of approximately 5x at optimal gearing compared to the industry average of about 10x.

The bank’s dividend yield could potentially reach 15% from the current 12% if a 100% payout ratio is implemented, according to the research note.

Deutsche Bank also views the proposed acquisition of Mediobanca as strategically valuable, noting it would diversify earnings and accelerate capital returns while offering significant upside potential.

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