RBC starts UniCredit at 'sector perform', sees limited near-term scope for upgrades
BUZZ-RBC starts UniCredit at 'sector perform', sees limited near-term scope for upgrades ** RBC Capital Markets initiates coverage of Italy's UniCredit CRDI.MI with a "sector perform" rating on short-term risks and lower earning visibility as it consolidates Commerzbank's CBKG.DE acquisition
** The brokerage sees limited scope for meaningful short-term consensus upgrades, hindering a re-rating in the near future
** "We believe in UniCredit's ability to deliver guided cost synergies, but prevailing revenue attrition uncertainty impacts our earnings visibility at this stage," it says
** RBC expresses doubts over the scope for a guidance upgrade from the current 2028 target of "well above" €13 billion ($14.99 billion), as potential rate benefits are likely to be offset by higher-than-expected, inflation-driven integration costs
** The brokerage sets its TP at €90, slightly above Monday's closing price of €84.5 per share
** Out of 21 analysts covering UniCredit, 15 rate the stock "buy," 5 rate it "hold," and one mantains a "sell" rating - LSEG data
($1 = 0.8669 euros)
(Reporting by Anna Uras)
Recent news on COMMERZBANK AG
See all newsGermany labour union calls for warning strikes in private bank sector (updated)
Germany labour union calls for warning strikes in private bank sector
European banks seek alternative cross-border expansion strategies, Morningstar DBRS says
Deutsche Bank AG FF - Post Stabilisation Notice - Henkel EUR 3yr & 7yr
German regulator fines Nomura over Commerzbank disclosure breaches