REVO S.p.A.: Reinforced Buy on Resilient Earnings, Strategic Interest, and Increasing M&A Optionality

REVO S.p.A., the Financial sector company, was revisited by a Wall Street analyst yesterday. Analyst Elena Perini from Intesa Sanpaolo reiterated a Buy rating on the stock and has a €23.20 price target.

Elena Perini has given his Buy rating due to a combination of factors that, in her view, support further upside in REVO S.p.A.’s share price. She highlights that REVO’s relatively small size allows it to grow selectively and maintain profitability even as the broader P&C insurance cycle becomes less favorable, with lower reinsurance costs and the introduction of mandatory natural catastrophe coverage for Italian SMEs providing additional structural support. On this basis, she sees REVO’s earnings profile as relatively resilient, justifying a lower risk assessment (reduced cost of equity and beta) and supporting an increased target price of EUR 23.2, which still implies meaningful upside from current levels.
Perini also underscores that external strategic interest enhances the stock’s appeal and justifies a rerating. Vittoria Assicurazioni’s move to increase its stake, potentially up to 20%, is viewed as a constructive signal that could open the door to operational synergies, particularly by combining Vittoria’s strong presence in motor lines with REVO’s specialization in non-motor products for SMEs. In addition, reported interest from large international insurers such as Allianz and AXA reinforces the idea that REVO is a scarce, attractive asset, and serves as a valuation benchmark given recent sector transactions on earnings multiples similar to, or above, where REVO trades on its 2028 estimates. Coupled with modest upgrades to medium-term profit forecasts, these elements lead her to reaffirm a Buy rating, supported by both fundamental growth prospects and increasing M&A optionality.

According to TipRanks, Perini is a 4-star analyst with an average return of 31.2% and a 92.86% success rate.