Intesa-Sanpaolo stock initiated at Outperform by RBC Capital

Investing.com - RBC Capital initiated coverage on Intesa-Sanpaolo SpA (BIT:ISP) (OTC:ISNPY) with an Outperform rating and set a price target of EUR7.00. The banking giant, with a market capitalization of $111.7 billion, is currently trading below its InvestingPro Fair Value, suggesting potential upside opportunity.

The research firm expressed confidence in the Italian bank’s ability to deliver approximately 20% return on equity through economic cycles as the company approaches its upcoming strategic plan. The bank has demonstrated strong financial performance, with a current ROE of 14% and an attractive dividend yield of 4.46%.

RBC Capital analyst Pablo de la Torre Cuevas noted that "revolutionary changes are not required for ISP to continue delivering leading profitability and shareholder returns, given the bank’s track record and well-run business model."

The firm’s analysis projects profit before tax figures approximately 5% above consensus estimates by fiscal year 2027.

RBC Capital believes there is room for "incremental, controllable actions" that could help Intesa-Sanpaolo consolidate its strong financial performance in the coming years.

In other recent news, Goldman Sachs has downgraded Intesa-Sanpaolo’s stock from a Buy to a Neutral rating. The decision comes as the firm sees limited upside potential for the Italian banking giant. Alongside the downgrade, Goldman Sachs also adjusted its price target for Intesa-Sanpaolo, reducing it slightly from EUR6.10 to EUR6.00. This change follows a significant period of growth for Intesa-Sanpaolo, which saw its share price increase by approximately 166% since May 27, 2022. During the same timeframe, the broader European banks index rose by 122%. These developments reflect the changing outlook for the bank as assessed by Goldman Sachs. Investors may find this update relevant as it provides insights into the current analyst sentiment surrounding Intesa-Sanpaolo.

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