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: 18 november 2021

Target Price: €4.8 (from €4.5)

recommendation: Buy

Attractive dividend yield supporting our positive view

"In 3Q21 Equita reported a net profit of EUR 2.6M, 34.2% above our estimate, thanks to higher-than-expected revenues. The most supportive message was on the dividend, with the company’s press release indicating that company projections on 2021 results (already surpassing 2022 targets, in line with our expectations), together with the group’s capital solidity, should allow a dividend payment above EUR 0.30/share on the current year’s earnings, with a payout ratio of at least 90%. Our updated estimates point to EUR 0.325/sh., implying an 8.3% yield at the current share price"

"Following the release of stronger-than-expected 3Q results and the positive outlook provided by management, we upgrade our 2021E-23E net profit estimates by an average 2.5% and our dividend projections according to an average 90% payout ratio, which led us to raise our target price to EUR 4.8/share (from EUR 4.5/sh.). Given an upside potential of 22%, 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 (8.3%2021E yield at the current share price) and the option of accelerating the growth trajectory by deploying the excess capital through potential acquisitions. We highlight that our FY21E revenues and net profit estimates (EUR 80.6M and EUR 16.7M) are above the 2022 business plan’s targets, in line with the company’s expectations"