The Frankfurt-based financial giant, Deutsche Bank, has reduced the target price of 5 Italian banks. Unicredit (-1,46%) saw its target price decrease from 1,6 to 1,3 euro and Intesa Sanpaolo (-1,80%) from 2,1 to 1,9 euro confirming the buy rating. Not even Banco Popolare (-1,63%) was convinced by the Frankfurt institute, whose target price was cut from 1,7 to 1,6 euros. Similarly, Ubi (-1,73%) fell from 3,7 to 3,1 euros and Credem (-1,58%) from 3,4 to 3,1 euros, confirming the hold recommendation. On the other hand, the target prices on Banca Mps (-1,39%), at 0,7 euro, and on BPMilano (+1,47%), at 1,4 euro, with buy and hold ratings respectively, were confirmed.
Deutsche Bank also lowered its industry net profit estimates by 13% for 2011, 42% for 2012 and 26% for 2013. The Frankfurt institute predicts a “recession in Europe and Italy in the next 12 months. This will negatively impact banks' net interest income, loan loss provisions and volume growth.
