Coverage

Research Coverage on the Equita stock (EQUI:MI)

As of today, the analysts of Intesa Sanpaolo (UBI Banca) covers the Equita stock. Find below the latest available equity research. The research is also available on the Borsa Italiana official website.

last update: 29 November 2022

Target Price: €4.4 (from €4.1)

recommendation: Buy

Solid 3Q22 Results and Strong Message on Dividend

"Together with the release of solid 3Q/9M22 figures, Equita stated that, given the results management expects for FY22, the Board of Directors is confident in proposing a 2022 dividend (payable in 2023) of EUR 0.35/share (9.6% yield at current share price), in line with 2021. Our estimates incorporate cumulated 2022E-24E dividends of more than EUR 50M, in line with the business plan’s target, with an average yield of 10.5%. We reiterate our positive view."

"We set a new target price of EUR 4.4/share, up from EUR 4.1/sh., due to upgraded dividend estimates more than offsetting, in our DDM valuation, the negative impact from a higher cost of equity (10% from 9.5%, after incorporating our updated 3.5% riskfree rate). Given an upside potential of more than 20%, we confirm our BUY rating. Our positive view relies on: i) a sound growth profile; and ii) a solid balance sheet, allowing both a rewarding dividend policy (10.5% average 2022-24E yield at the current share price, 9.6% 2022E) and the option of accelerating the growth trajectory by deploying the excess capital through potential acquisitions"