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: 14 september 2022

Target Price: €4.1 (from €4.7)

recommendation: Buy

Strong 2Q/1H22 Results and Attractive Dividend Yield

"In 2Q22A, Equita Group reported a net profit of EUR 6.5M, 33% above our EUR 4.9M estimate, essentially thanks to higher than expected revenues (EUR 29.9M vs. EUR 23.5M forecast), driven by Investment Banking. CEO Vismara stated the BoD will consider proposing to the next Shareholders’ Meeting the distribution of a DPS not lower than EUR 0.30. We expect a 2022E dividend of EUR 0.33/share (9.8% yield at the current share price) and a cumulated 2022E-24E dividend distribution of more than EUR 50M, in line with the business plan’s target, with an average yield of 11.1%. We reiterate our positive view"

"We set a new target price of EUR 4.1/share, down from EUR 4.7/sh. due to a higher cost of equity after incorporating our updated risk-free rate and equity-risk premium parameters (3% and 6.5%, respectively). Given an upside potential of approx. 21%, 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 (11.1% average 2022-24E yield at the current share price, 9.8% 2022E) and the option of accelerating the growth trajectory by deploying the excess capital through potential acquisitions"