In a report released on April 8, Manuela Meroni from Intesa Sanpaolo maintained a Buy rating on illimity Bank SpA (53D – Research Report), with a price target of €3.70.
Manuela Meroni has given her Buy rating due to a combination of factors related to illimity Bank SpA’s strategic initiatives and future growth potential. The bank has outlined a strategic plan focusing on SME lending and investment banking, alongside cost reduction and the disposal of non-core assets. These measures are expected to enable a profitability recovery, although returns and shareholder remuneration may remain modest in the short to medium term.
Despite the challenges associated with asset disposals and the need for a supportive macroeconomic environment, illimity aims for significant loan growth in its core segments. The strategic plan anticipates an increase in return on tangible equity (ROTE) to 8% by 2028. The target price for illimity’s stock is set at EUR 3.7, reflecting a balanced assessment of the company’s value with and without asset disposals.