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Investing.com - Deutsche Bank has raised its price target on Banca Monte dei Paschi di Siena SpA (BIT:BMPS) to EUR11.00 from EUR9.20 while maintaining a Buy rating.
The price target increase follows BMPS’s successful acquisition of a controlling 62% stake in Mediobanca, an outcome that Deutsche Bank notes was "initially considered almost impossible."
Deutsche Bank highlights that the offer will reopen from September 15-22, with expectations for increased acceptance during this period.
The acquisition provides significant benefits to BMPS, including full deferred tax asset (DTA) release through Mediobanca consolidation, which could generate incremental impacts exceeding EUR0.3 billion annually.
The bank’s capital position remains strong despite the acquisition, with Common Equity Tier 1 (CET1) ratio estimated at approximately 16% at inception, while Deutsche Bank notes that BMPS’s ownership level could accelerate integration and potentially lift at least part of the EUR2.2 billion capital deductions related to Assicurazioni Generali.
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