Estimated reading time: 4 minutes
by Davide Pantaleo
BPM bench in great shape on the tops of late March
Banco BPM, after selling just over 1% yesterday, thanks to some profit taking after five consecutive sessions in progress, has decided to take the earnings path today.
The stock ended trading at € 1,2255, with a 6.52% rally and over 37 million shares traded, above the average of the last 30 days of approximately 34 million pieces.
Banco BPM thus returned to values that it had not seen since the last days of March, benefiting from the good intonation of the sector fueled by the Mediobanca race, which in turn was galvanized by Del Vecchio’s request to rise to 20% of the capital.
Banco BPM favored by a sharp drop in spreads and BTP rates
Supporting the purchases on Banco BPM were also good indications from the bond front, with the BTP-Bund spread falling by 4.79% at 187 basis points, while the ten-year yield fell by 2.82% to 1.482 %.
Banco BPM returns to be the most shorted title in Piazza Affari
On the other hand, the news received from Consob, from which it was learned that according to the update of late May, Banco BPM has once again become the most short-lived action in Piazza Affari.
There are currently 5 net short positions on the security open by funds, for a share of 4.26% of the capital.
Banco BPM under the lens of Exane: caution is a must
Remember that in the last few days Banco BPM ended up under the lens of Exane, whose analysts reiterated the “neutral” recommendation, with a target price cut by 26% to 1.4 euros, a value that offers an upside potential of around 14% compared to current prices, therefore not particularly large when compared to that of other banks.
The broker believes that Banco BPM on current levels is on very low valuations from a fundamental point of view.
At the same time, however, analysts point out that a re-rating of the security is very unlikely in the short term, in the absence of catalysts on the horizon and given the lower prospect of profitability and capital ratio among Italian banks.
In the meantime, it should be noted that Banco BPM not later than 22 May marked a new historical low of € 1.0115.
From this level there has been a decisive recovery that has seen the share score a rise of over 21% to date, even if the prices at the moment still show a loss of over 52% from the top 2020 reached last 18 February at 2.59 euros.