The elections give wings to the share price of Unicredit, which at the beginning of the afternoon gained 3,2%, to 11,708, after having reached its last year high of 11,73. Well too Ps (+2,53%, to 1,11 euros), on which Unicredit is leading an exclusive due diligence.
The shares rise because the secretary of the Pd, Enrico Letta, won the supplementary elections for the seat of Siena, removing an unknown factor that had weighed heavily on the Unicredit-Mps operation for some time. Now the talks to complete the operation can enter the final phase.
Mediobanca he considered the success of the Pd secretary in the Siena elections a "precondition for finding a solution on the Monte dei Paschi front". Piazzetta Cuccia has updated the assessment of the Unicredit stock to "Outperform" also "on the accretive basis of M&A". The stock has “outperformed by 4% since August and we still think it can offer double-digit upside as strategy clarification is on the way,” the analysis continued.
Moreover, according to analysts of Bofa, the rise of Unicredit "could be further strengthened if the institute were to close an agreement with Mps at the conditions announced to the market". The broker confirmed the "Buy" rating on the Unicredit stock.
Experts from Kepler Cheuvreux they now expect "a net profit of over 3,1 billion euros for this year" and see "as the main equity catalysts the decision on the acquisition of Mps (probably in October), the presentation of the new business plan (probably in November ) and the execution of the share buyback of 652 million euros by the end of the year”.
