Street Calls of the Week
Investing.com - Kepler Cheuvreux initiated coverage on Banco BPM SpA (BIT:BAMI) (OTC:BNCZF) with a Reduce rating and a price target of EUR11.70, according to a research note released Friday.
The Milan-based Italian bank was simultaneously added to Kepler Cheuvreux’s least preferred list of European banks, replacing BNP Paribas, which maintains a Reduce rating with a EUR75 price target.
Kepler Cheuvreux’s analysis indicates that Banco BPM appears overvalued on a standalone basis, with no immediate value accretion for minority shareholders from a potential acquisition of Crédit Agricole Italia.
The research firm noted that while BNP Paribas has been removed from the least preferred list, the French bank still faces challenges with capital generation despite rebuilding momentum and being "arguably inexpensive."
Banco BPM, Italy’s third-largest bank by assets, was formed in 2017 through the merger of Banco Popolare and Banca Popolare di Milano.
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