The shares of Fondiaria Sai fly to Piazza Affari, achieving an increase of more than six points at the beginning of the afternoon, with volumes equal to about five times the average of an entire session. The subsidiary Milano Assicurazioni also did well, rising by around four points.
The rally is powered by upgrades of various brokers, after Friday the banks in the guarantee consortium for the capital increase managed to sell the entire amount of Fonsai ordinary shares remained unopted (21,57%), paving the way for the merger with Unipol, Premafin and Milano Assicurazioni. Furthermore, in the wake of some press rumors, the market is starting to bet on the possibility conversion of category B Fonsai savings shares into ordinary securities.
Banca Akros raised the opinion on Fonsai from "hold" to "add", with a target price from 1 to 1,20 euro. Also Cheuvreux improved the target price from 0,95 to 1,05 euro, while Equity added the title to its main portfolio.
Among the reasons justifying greater optimism on the Fonsai stock, Intermonte (which raised the opinion on the company from "neutral" to "outperform", with a target price of 1,27 euros) underlines in a study how the risk of solvency which weighed on the company has improved thanks to the reduction of the Btp-Bund spread.
Although post-merger solvency remains a weakness of the future Unipol-Sai, recent trends are positive and there is less chance that the capital will need to be further strengthened.
From an industrial standpoint, the technical trends in the non-life business are positive and should lead to a recovery in operating profitability. Among the remaining risks, Intermonte points out that the appointment of an ad acta commissioner decided by Isvap could bring to light other facts concerning the former ownership.
