EQUITA ups MPS, Mediobanca to 'buy' on attractive valuation and M&A chances ahead

Mediobanca Banca Di Credito Finanziario SpA

05/06/2026 10:32

** EQUITA ups Monte dei Paschi di Siena (MPS) BMPS.MI to "buy" from "hold," as the stock now benefits from an attractive valuation with plenty of options for M&A at its disposal
** It also raises its TP by 7.3% to €11.8 ($13.73) per share, adding the stock to its recommended portfolio
** EQUITA also upgrades Mediobanca MDBI.MI, majority-owned by MPS, to "buy" from "hold," with a 12.5% TP increase to €28.9 
     ** The broker gives five reasons for upgrading MPS: valuation discounted compared to sector, strong capital position, remuneration targets among the highest in Europe, consolidation options and upside from internalising its insurance business 
** MPS is currently focused on achieving €700 million in synergies from its Mediobanca integration, but will likely play a role in the second M&A wave expected to hit the Italian market, says EQUITA
** A possible deal with Banco BPM BAMI.MI "would make strong industrial sense, creating the second largest banking group in Italy and with a complete offer in terms of product factories," it notes
** EQUITA estimates a PT of €13 per share for the combined entity, in case of a friendly transaction entirely in shares, without premium and with €800 million in gross synergies
** Out of 12 analyst covering MPS, nine rate the stock "buy" and three rate it "hold" - LSEG data

($1 = 0.8595 euros)

 (Enrico Sciacovelli)
 ((enrico.sciacovelli@thomsonreuters.com))