Difficult session at Piazza Affari for the title Finecobank, a bank included in the FTSE MIB index, after analysts from JPMorgan they cut the target price to 13,4 euros per share from 14,5 euros, confirming the recommendation “Neutral” and inserting the company under “Negative Catalyst Watch“. The focus is on the 2023 financial year results, which will be published on 6 February. The stock on the stock exchange recorded a drop of 4,80%, reaching 13,3 euros. Chartists see a possible extension of the bearish phase with a support area identified at 13,06 and subsequently 12,82. Resistance at 13,6.
JP Morgan lowers profit forecast by 9% for 2024 and 2025
JP Morgan analysts also lowered theirs profit estimates per share for the 2024 and 2025 of the 9%, explaining that they “remain constructive for the longer term, despite concerns about the short term, by virtue of the diversified business model and impressive operational leverage”.
What is especially worrying is the expectation that “on the occasion of the budget results, Fineco will lower the guidance on interest margin (net interest income) of fiscal year 2024, as it is explicitly based on forward curves that lowered substantially after the third quarter results,” the analysts explain. “We expect that the recent negative push in deposits and flows of assets under management will weigh on investor sentiment and put pressure on net interest income and commission margins,” we read in a note. The stock does not benefit from the fact that Jefferies analysts, however, raised the price target from 12,2 to 12,6 euros.
