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On Wednesday, Kepler Cheuvreux revised its stance on Intesa Sanpaolo (OTC:ISNPY) SpA (ISP:IM) (OTC: ISNPY), downgrading the stock from Buy to Hold, while maintaining a price target of EUR4.90. The adjustment follows the stock’s impressive 34% gain over the past six months, with shares trading near their 52-week high. According to InvestingPro analysis, the stock appears slightly overvalued at current levels, though it maintains a healthy P/E ratio of 9.85. According to Kepler Cheuvreux, Intesa Sanpaolo’s first-quarter financial performance exceeded expectations, yet the bank did not alter its 2025 forecast, which projects a net profit "well above" EUR9 billion. With a substantial market capitalization of $96.15 billion and revenue growth of 9.58% in the last twelve months, Intesa Sanpaolo remains a prominent player in the banking sector. InvestingPro subscribers can access detailed financial health scores and 10+ additional expert insights about the company’s performance.
Kepler Cheuvreux’s earnings per share (EPS) estimates for Intesa Sanpaolo remain constant, suggesting no significant change in the bank’s income projections. The research firm anticipates a shift in the sources of income for the bank but does not expect the net writebacks recorded in the first quarter within the Corporate and Investment Banking (CIB) and International banks divisions to continue in the future. The bank currently offers shareholders a significant dividend yield of 4.74%, making it an attractive option for income-focused investors.
The downgrade reflects Kepler Cheuvreux’s analysis of Intesa Sanpaolo’s current valuation and the sustainability of its income sources. Despite the bank’s strong start to the year, Kepler Cheuvreux appears cautious about the replicability of the positive results, particularly the net writebacks, which may not be a recurring factor in the bank’s performance.
Intesa Sanpaolo has not publicly responded to the downgrade at the time of reporting. Investors and market watchers will likely monitor the bank’s stock performance closely, following the revised rating and price target. The EUR4.90 price target set by Kepler Cheuvreux remains unchanged, indicating that while the firm sees limited upside potential for the stock at its current price, it does not anticipate significant downside either.
In other recent news, Intesa Sanpaolo has been the focus of several notable developments. BNP Paribas (OTC:BNPQY) Exane upgraded Intesa Sanpaolo’s stock from Neutral to Outperform, raising the price target from €4.55 to €5.60. This upgrade is based on the bank’s strong fundamentals and opportunities arising from the consolidation in the Italian banking sector. BNP Paribas Exane anticipates that Intesa Sanpaolo’s shares will perform better than the market average in the coming months. Meanwhile, Kepler Cheuvreux initiated coverage on Intesa Sanpaolo with a Hold rating and set a price target of EUR4.90. Despite recognizing the bank’s premium valuation due to high-quality earnings, Kepler Cheuvreux sees limited potential for stock price appreciation. The firm forecasts a net profit of EUR9.2 billion for Intesa Sanpaolo in 2025, despite an expected 6% decrease in Net Interest Income. This decrease is anticipated to be offset by robust fee generation and higher trading income.
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