Business
GS starts Banco BPM at 'buy' on prospects for organic growth, M&A
GS starts Banco BPM at 'buy' on prospects for organic growth, M&A
About this update from Banco Bpm Spa
** Goldman Sachs initiates coverage of Banco BPM MIL:BAMI with a "buy" rating and a PT of EUR 15.70 ($18.43), citing prospects for both organic and inorganic growth** The broker lists five reasons behind the rating: the lender's focus on wealthy regions of Northern Italy, high profitability, a solid capital position, a strong management track record and an attractive valuation** GS highlights BPM's CET1 ratio of 13.3% at end-June - without "Danish Compromise" benefits after acquiring Anima Holding - giving the bank scope to bolster capital returns or to play a role in the next Italian M&A wave, following UniCredit's failed takeover attempt** Revenue diversification and recurring revenue streams, coupled with management's good track record on cost discipline, puts BPM among the top broker's European banking favourites in terms of profitability and capital generation forecasts** Out of 15 analysts that cover Banco BPM, six rate the stock "strong buy" or "buy," eight rate it "hold" and only one maintains a "sell" rating - LSEG data($1 = 0.8519 euros)