Jefferies downgrades Poste Italiane stock rating to Hold on valuation concerns

Published 24/06/2025, 06:54
Jefferies downgrades Poste Italiane stock rating to Hold on valuation concerns

Investing.com - Jefferies downgraded Poste Italiane SpA (BIT:PST) (OTC:PITAF) to Hold from Buy on Monday, while raising its price target to EUR18.40 from EUR18.00.

The Italian postal and financial services company has seen its shares rise approximately 30% year-to-date, outperforming the benchmark FTSE MIB index’s gain of about 15% during the same period.

Jefferies noted that while Poste Italiane’s diversified business model provides reassurance around the company’s earnings per share trajectory during economic uncertainty, the stock is now trading well above its historical average price-to-earnings ratio by approximately 15%.

The firm’s sum-of-the-parts P/E model indicates that Poste Italiane is currently trading at a premium compared to the average P/E ratios of its peers.

Given the strong year-to-date performance and current valuation metrics, Jefferies views the risk-reward profile as "more balanced from here," prompting the downgrade despite the slight increase in price target.

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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