Deutsche Bank raises Banca Generali stock to buy, ups target to EUR56

Published 05/02/2025, 13:04
Deutsche Bank raises Banca Generali stock to buy, ups target to EUR56

On Wednesday, Deutsche Bank (ETR:DBKGn) analyst Giovanni Razzoli adjusted the rating and price target for Banca Generali SpA (LON:0DQZ) (BGN:IM), shifting from a "Hold" to a "Buy" status and increasing the price target to €56.00, up from the previous €45.80. The upgrade reflects Deutsche Bank’s positive outlook on the bank’s prospects, influenced by several key factors.

Razzoli highlighted Banca Generali (BIT:GASI)’s particular sensitivity to declining interest rates, which is significantly higher than its competitors. This characteristic, according to Razzoli, indicates that the bank’s commercial performance benefits more from a wealthier client base, especially in a financial environment where the yield curve is flattening or shifting downwards.

The analyst also pointed out the potential positive impact of new strategic initiatives undertaken by Banca Generali. These initiatives are expected to contribute to the bank’s growth and performance, although specific details of these strategies were not disclosed in the context provided.

Furthermore, Razzoli believes that Banca Generali is well-positioned to capitalize on growth acceleration opportunities that may arise from ongoing consolidation in the Italian banking sector. The bank’s ability to leverage these opportunities could lead to further expansion and increased market share.

Banca Generali’s asset under management (AUM) inflows have already shown a positive trend, as evidenced by the second half of 2024. During this period, the bank reported an increase of €2.4 billion in AUM inflows, a significant rise compared to the €0.7 billion recorded in the second half of 2023.

Deutsche Bank’s revised rating and price target suggest confidence in Banca Generali’s ability to navigate the current financial landscape and to continue its growth trajectory based on the factors outlined by Razzoli.

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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