Intermonte Reiterates Buy on Banca Ifis, Citing Illimity Integration Upside, Strong Capital and Re-Rating Potential

In a report released yesterday, from Intermonte assigned a Buy rating on Banca Ifis SPA, with a price target of €31.00.

Intermonte SIM S.p.A. has given his Buy rating due to a combination of factors, notably the successful acquisition of Illimity and the solid performance of Banca Ifis’s core business, which met standalone profit guidance despite integration costs and one-off charges. The broker also underscores the bank’s ability to sustain an attractive dividend, supported by badwill from the deal and a robust underlying earnings profile.

Intermonte SIM S.p.A.’s rating is based on the view that the Illimity integration, including disposal of non-core assets and IT restructuring, should streamline the group, reduce risk, and unlock meaningful cost and funding synergies over time. In addition, the bank’s strong capital position and the wide discount to its estimated tangible equity valuation underpin expectations of a re-rating potential, justifying a target price above the current market level.

Based on the recent corporate insider activity of 54 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of 0NBX in relation to earlier this year.