Fineco in the spotlight with quarter above expectations and expected top revenues in 2024

(Il Sole 24 Ore Radiocor) - Finecobank was in the spotlight in Piazza Affari, on the day after the release of its above-expected quarterly accounts. The bank led by CEO Alessandro Foti reported revenues up 11.4% to 327 million euro, against expectations for 322 million euro. Operating profit grew 12% to 248 million (expectations for 242 million) and net profit came in at 147 million, up 12.4% excluding systemic charges and above estimates at 138 million. FinecoBank indicated for 2024 to expect revenues at a record high level, with an improved mix in favour of commissions thanks to revenue investing, with an expected 'low double digit' increase. Positive messages that lead Intermonte analysts to raise "adjusted Net Proft estimates by 5%/0.5%/2.3% for 2024/2025/2026 respectively", confirming "the Neutral view on the stock" and increasing the target price to €15 from €14.5.

Equita confirms the 'Buy' and raises the target price by 3% to EUR 16.9: "we expect an improvement in managed inflows," the analysts say, "also favoured by the launch of new investment solutions, which could act as a catalyst for a re-rating of the stock". Banca Akros brokers also raise their estimates, raising earnings per share by an average of 6 per cent for 2024-2026 'as the first quarter numbers, April net inflows and outlook exceeded our expectations'. The analysts raise the target price to EUR 15.8 from EUR 15 but - 'considering the current limited upside potential' - downgrade the rating to 'Accumulate' from 'Buy'.

Weaker was the rest of the banking sector, which had been tonic at the start. Mps and UniCredit went negative after a good start to the session in the wake of the quarterly results presented on the eve of the meeting. Profit-taking on Banco Bpm, despite the accounts showing an increase in net profit of 40% to 370 million euro, and Popolare di Sondrio which, after the rises of recent weeks, slipped among the worst of the Ftse Mib.