BofA double-ups Poste Italiane to 'buy' on TIM deal potential

Telecom Italia SpA

13/04/2026 11:12

** Bank of America double-upgrades Poste Italiane PST.MI  to "buy" from "underperform", saying the firm's bid on Telecom Italia TLIT.MI has the potential to create significant value with around 25% earnigs-per-share (EPS) accretion by 2029-end

** It increases its PT to 28.8 euros, indicating a 35% potential upside

** The brokerage deems the proposed 0.7 billion euros ($817.9 million) synergies, seen coming at 0.5 billions from cost savings before tax and the rest from revenue synergies, as conservative

** It expects the Poste-TIM consolidation in Italy's less-consolidated telecommunication market to add around 200-250 million euros to net profits for the combined entity

** In the scenario excluding the TIM deal, the brokerage values Poste's fair value at 26.0 euros per share, citing distribution and deposits as the company's key strengths

** Out of 15 analysts that cover Poste Italiane, seven rate the stock "strong buy" or "buy,"​ eight rate "hold" and no analysts rate the stock "strong sell" or "sell" - LSEG data

($1 = 0.8559 euros)

 (Reporting by Mirko Miorelli)

 ((Mirko.Miorelli@thomsonreuters.com))