The week on the stock market has started well for the Banco Popolare stock, which by mid-morning gained more than one percentage point, to 13,20 euros, after coming close to +2% in the first trading days. The shares travel against the trend compared to the Ftse Mib, which in the same minutes recorded a loss of 0,3%.
The purchases of the institution's stock were triggered by a report by Mediobanca Securities, which states that the main concerns about Banco Popolare "are disappearing". The broker also raised the recommendation from “neutral” to “outperform”.
In the light of the capital increase concluded in the spring, and therefore of the current capital levels, to which must be added the impacts of the buyback of Creberg's minorities and the integration of Italease, according to Mediobanca the Veneto-based group has "good chances" of overcoming the asset quality review of the ECB.
It should also be considered that the level of credit coverage is in line with that of comparable institutes and that there is the possibility of acting on personnel costs (since approximately 20% of employees have over 30 years of service). According to analysts, all these factors combined with the weaker performance since the beginning of the year compared to other institutions are the basis of the stock's growth potential.
