Analyst Davide Rimini of Intesa Sanpaolo maintained a Hold rating on Banca Sistema S.p.A., with a price target of €1.94.
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Davide Rimini has given his Hold rating due to a combination of factors influencing Banca Sistema S.p.A.’s performance. The company’s second-quarter results were solid but slightly under expectations, primarily due to increased provisions. While there was a slowdown in revenue growth as the company focused on reducing past due loans, there was a notable improvement in capital ratios, with CET1 rising by 140 basis points to 13.8%.
Despite the challenges, Banca Sistema maintains a positive outlook for the second half of the year, supported by a re-established capital buffer and plans for expansion in the Pawn business. Additionally, a public tender offer by CF+ at EUR 1.8 per share, which includes cash and shares in Kruso Kapital, adds another layer of complexity to the stock’s valuation. Given these mixed signals, Rimini has opted to maintain a Neutral stance, adjusting the target price to EUR 1.94 from EUR 2.20, reflecting the slower growth trajectory.
Based on the recent corporate insider activity of 12 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of 0R9H in relation to earlier this year.