Deutsche Bank analysts are once again betting on MPS, believing that the stock "can offer" its shareholders "significant revaluation potential" thanks to the progress made by the bank.
The 'target price', the price at which the stock can aim, is raised from 4.4 to 5.1 euros, a valuation of more than 40% higher than current stock market prices.
The fourth quarter results, we read in the report, represent "a turning point" for Siena, "whose appeal has further increased in terms of return on capital, M&A and risk reduction".
Among Monte's strengths is its dividend policy, which offers a cash yield of 7% this year and above 13% in 2025, "among the highest among European banks".
Numbers, they highlight, which also represent a "strong message" to potential buyers "to speed up negotiations" before further advances in the stock reduce "any potential upside" for the potential partner.
To reduce the burden of the Treasury in the event of a merger, DeutscheBank also hypothesizes that MPS, thanks to the "highest" capital level in Europe, could resort to an extraordinary dividend.
By maintaining a Cet1 of 14.5%, Monte could distribute two billion euros - of which 800 million allocated to the Treasury - diluting the MEF to 14% in the event of a paper-for-paper merger with Banco Bpm and to 22% in the case of a marriage with Bper.
On Piazza Affari, Monte advanced by 4.3% to 3.6 euros.
Reproduction reserved © Copyright ANSA