BofA cuts Banco BPM stock rating, raises price target to EUR9.40

Published 19/02/2025, 08:44
BofA cuts Banco BPM stock rating, raises price target to EUR9.40

On Wednesday, BofA Securities adjusted its stance on Banco BPM SpA (BAMI:IM) (OTC: BNCZF), downgrading the stock from Buy to Neutral. This revision came with an increase in the price target from EUR 8.00 to EUR 9.40. The reevaluation by BofA Securities follows Banco BPM’s announcement regarding its pursuit to acquire a controlling interest in Anima, an asset management company.

Banco BPM, which already holds a 22% stake in Italy’s third-largest asset manager, has expressed its intention to proceed with the cash offer to take over Anima regardless of whether it receives regulatory approval. This move aligns with the so-called Danish Compromise. The bank has also increased its cash offer to Anima’s shareholders to EUR 7.00 per share, up from the initial EUR 6.20. This revised offer represents a roughly 2% premium over Anima’s last closing price.

The proposed acquisition is subject to approval at Banco BPM’s Annual General Meeting (AGM) scheduled for February 28, where it will require a simple majority to pass. BofA Securities’ analyst noted the implications of the increased offer for Anima on the potential deal with UniCredit. According to the conditions set by UniCredit for its offer to Banco BPM, a higher price for Anima could provide UniCredit with the option to abandon its proposal.

The analyst’s commentary sheds light on the strategic maneuvers by Banco BPM as it seeks to expand its footprint in the asset management sector. The bank’s willingness to move forward with or without regulatory consent underlines its commitment to the acquisition, which is a significant step for the company’s growth strategy. The market will closely monitor the outcome of the upcoming AGM for further developments.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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