UniCredit: Will It Be The Next Leading EU Bank?

Mare Evidence Lab
5.77K Followers
(8min)

Summary

  • UniCredit's voluntary tender offer for Banco BPM, worth €10.1 billion, aims to create a market leader in Italian loans/deposits with a potential earnings uplift.
  • UniCredit's Q3 net operating profit exceeded expectations, and the bank raised its yearly revenue forecast, maintaining strong capital flexibility for future M&A activities.
  • With a BPM takeover, we believe UniCredit could lead the EU banking system.

Unicredit Tower skyscraper in Milan

Cineberg

Here at the Lab, we have good coverage of EU financial institutions. This year, the sector has already delivered a 31% total return, and the banking industry still trades at a 20% discount to long-run P/E multiple and a 47% discount to the broader market. This

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Analyst’s Disclosure:I/we have a beneficial long position in the shares of UNCRY, UNCFF either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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