Coverage

Strong 4Q in a Still Soft Market. Attractive Dividend Yield Confirmed

"4Q23 results were better than our estimates, both on the top and bottom line, with revenue accelerating in each divisional unit, allowing the company to achieve growth of +2% yoy in FY23 in a challenging year for the investment banking industry. A softe than-expected start to the year has led management to be cautious in its outlook, only expecting signs of a market recovery in 2H24. The BoD proposed a FY23 DPS of EUR 0.35/share (a 9.2% yield at the current share price), in line with both 2022 and our estimate and confirmed the Shareholders’ remuneration targets of >EUR 50M cumulative dividends distributed over the 2022-24 period"

"We set a new target price of EUR 4.6, up from EUR 4.2, based on our new fine-tuned 2024-25E dividend estimates and the positive impact of a lower cost of equity (10.5% from 11% after incorporating our updated 4.0% risk-free rate) in our DDM valuation. Given an upside potential of approx. 20%, we confirm our BUY rating"

DPS of EUR 0.35 (9.3% yield) sustainable also for 2024

"Q4 2023 revenues and net profit exceeded our estimates, although referred from small figures. The main surprise was in Alternative Asset Management"

"The proposed DPS (EUR0.35) is in line with our estimates and returns a 9.3% of dividend yield. They confirm cumulated dividends above EUR50m over 2022-24, leaving the same DPS for 2024"

"The outlook for 2024 is positive for Investment banking and Alternative asset management. The year has started with 25% YOY for the equity in Sales & Trading"