Jefferies initiates Banca Monte dei Paschi stock with Buy rating, sees synergies potential

Published 16/10/2025, 08:36
Jefferies initiates Banca Monte dei Paschi stock with Buy rating, sees synergies potential

Investing.com - Jefferies initiated coverage on Banca Monte dei Paschi di Siena SpA (BIT:BMPS) with a Buy rating and set a price target of EUR9.30, according to a research note released Thursday.

The investment firm believes the market is underestimating the synergies potential from the Italian bank’s combination with Mediobanca, which forms the basis for the positive outlook.

Jefferies projects its adjusted earnings per share estimates at 7% and 11% above consensus for 2027 and 2028, respectively, with potential for "best-in-class dividend yield" by 2028.

The research note highlights BMPS’s capital buffer as "the highest in Europe," providing confidence in future distributions to shareholders.

Jefferies points to an attractive valuation, with the price-to-earnings ratio expected to decline from 9.7x in 2026 to 7.7x in 2028, creating what it describes as "an attractive entry point for patient investors."

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