UniCredit: Jefferies downgrades to 'hold'
(CercleFinance.com) - Jefferies has downgraded the share of Italian bank UniCredit from "buy" to "hold," while maintaining its target price of 9 euros.
While the broker continues to see value at UniCredit, it says it sees less mid-term earnings catalysts relative to rival Intesa Sanpaolo.
The analyst also says that "weak visibility" on provision outlook remains a clear risk factor.
"With about 25% of Italian system corporate loans under some form of moratorium, the speed of rebound remains key to how successfully near-term liquidity measures can stave off medium-term solvency issues," it wrote in a note.
The UniCredit share is currently down 1.8% on the Milan Stock Exchange.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
While the broker continues to see value at UniCredit, it says it sees less mid-term earnings catalysts relative to rival Intesa Sanpaolo.
The analyst also says that "weak visibility" on provision outlook remains a clear risk factor.
"With about 25% of Italian system corporate loans under some form of moratorium, the speed of rebound remains key to how successfully near-term liquidity measures can stave off medium-term solvency issues," it wrote in a note.
The UniCredit share is currently down 1.8% on the Milan Stock Exchange.
Copyright (c) 2020 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.