Analyst Davide Rimini of Intesa Sanpaolo reiterated a Buy rating on Generalfinance S.p.A., boosting the price target to €28.20.
Meet Samuel – Your Personal Investing Prophet
- Start a conversation with TipRanks’ trusted, data-backed investment intelligence
- Ask Samuel about stocks, your portfolio, or the market and get instant, personalized insights in seconds
Davide Rimini has given his Buy rating due to a combination of factors including Generalfinance’s significantly better-than-expected FY25 results, with net profit up sharply year-on-year and returns on tangible equity at very elevated levels, alongside a richer dividend proposal that implies an appealing yield. The business also showed resilience in the latest quarter, with strong revenue momentum driven mainly by net interest income, very limited credit costs, and a solid capital position supporting future growth.
Rimini’s positive view is further underpinned by the upgraded 2025–27 business plan, which now embeds faster domestic expansion, higher profitability metrics, and a structurally lean cost base, leading to meaningful upgrades to his earnings forecasts. Shifting to a Gordon Model valuation with updated assumptions on cost of equity, sustainable profitability, and capital structure results in a materially higher target price of EUR 28.2, and despite the recent share price strength, he still sees the stock as undervalued relative to its superior earnings trajectory and returns profile.