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On Thursday, JPMorgan analyst Farooq Hanif upgraded Poste Italiane SpA (BIT:PST:IM) (OTC: PITAF) stock rating to Overweight from Neutral, with a new price target set at €18.50, up from the previous €15.50. The adjustment follows a reassessment of the company’s financial health and future earnings potential, particularly after reviewing the fiscal year 2024 results.
Hanif’s analysis indicates that Poste Italiane’s balance sheet and cash flow are strong, and the earnings outlook is positive. The firm’s sum-of-the-parts (SOTP) valuation was also a key factor in the decision to upgrade the stock. JPMorgan now expects Poste Italiane’s earnings before interest and taxes (EBIT) and earnings per share (EPS) for the years 2025 and 2026 to be approximately 5% higher than the consensus estimates.
The analyst emphasized the company’s ability to generate cash, which is expected to support the recently increased dividend payout while also improving capital flexibility. This financial leeway is seen as a potential avenue for higher growth or additional capital returns in the future.
In light of these findings, JPMorgan has recognized that the previous SOTP multiples applied to Poste Italiane were too conservative. The upgraded price target of €18.50 reflects the firm’s new valuation of the company’s stock.
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