After positive sector results, DB ups Italy's Pop Sondrio to 'buy', cuts Credem to 'hold'

** Deutsche Bank adjusts its view on Italian banks after the sector reported solid Q3 results, with banks and asset gatherers exceeding its estimates by 9% and 7%, respectively

** DB upgrades Popolare di Sondrio MIL:BPSO to "buy", as it sees the bank as a "proxy" of BPER MIL:BPE after the approval of the 1.45 swap ratio for their merger, which is expected to be completed by April 2026

** The brokerage cuts Credito Emiliano (Credem) MIL:CE to "hold", saying it does not see further room for re-rating after a 43% rise YTD

** It raises PT for Banca Generali MIL:BGN, one of its sector top picks, to 66 euros, saying the private bank should see an acceleration in its business in the medium term, supported by a "very high quality franchise, product mix and client base"

** It hikes Banca Mediolanum's MIL:BMED PT to 19.4 euros to reflect the revision of its 2025-2028 estimates, and FinecoBank's PT to 19.5 euros on "slightly better-than-expected" Q3 results

** "Following the earnings season, our bottom line for 2025-28E remains broadly unchanged for banks, and up by 3% for asset gatherers on average" - DB

COMPANY

RATING

OLD RATING

PT

OLD PT

BANCA GENERALI

Buy

"

66 euros

61 euros

BANCA MEDIOLANUM

Buy

"

19.4 euros

18.1 euros

POPOLARE DI SONDRIO

Buy

Hold

17.6 euros

11 euros

CREDEM

Hold

Buy

15.4 euros

14.3 euros

FINECOBANK

Hold

"

19.5 euros

18 euros

($1 = 0.8611 euros)