Davide Rimini, an analyst from Intesa Sanpaolo, assigned the Buy rating on Generalfinance S.p.A.. The associated price target was raised to €30.60.
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Davide Rimini has given his Buy rating due to a combination of factors that underline the strength of Generalfinance’s business model, despite a temporarily softer quarter. While first-quarter earnings were slightly below expectations because of modest revenue growth and higher operating expenses, asset quality improved and the results remain in line with the company’s full-year targets.
He also highlights that management has reiterated its guidance on turnover and net income, pointing to robust fundamentals, growing international operations and a cost of risk consistent with plans. On top of this, his updated valuation, based on a Gordon Growth Model and a higher cost of equity, yields a new EUR 30.6 target price and indicates attractive upside, supported by above-sector earnings growth and an appealing risk-reward profile.
According to TipRanks, Rimini is a 4-star analyst with an average return of 10.0% and a 59.46% success rate. Rimini covers the Financial sector, focusing on stocks such as Generalfinance S.p.A., doValue S.p.A, and Equita Group SpA.