In today’s article, we have picked two companies listed on Borsa Italiana, UniCredit SpA (IT:UCG) and Saipem SpA (IT:SPM) that have Buy ratings. Analysts have predicted more than 20% growth in their share prices.
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UniCredit demonstrates the potential for a 25% surge in its share price with a Strong Buy rating, while Enel offers a growth opportunity of 38% with a Moderate Buy rating from analysts.
Let’s take a look at the details.
UniCredit S.p.A.
UniCredit is a commercial bank that provides distinctive services across Italy, Germany, and Central and Eastern Europe to around 15 million customers.
After reporting robust first-quarter earnings with a significant increase in revenues, the company has substantially raised its financial targets for the year. UniCredit has projected a profit exceeding €6.5 billion for 2023, surpassing its previous guidance from January, which was around €5.2 billion. Analysts expect the share price to continue its upward journey based on increased capital return and an attractive valuation. The share price gained more than 135% in the last year.
Yesterday, Delphine Lee from J.P. Morgan confirmed her Buy rating on the stock at a price target of €28.0. This implies a growth rate of 32.17% from the current share price.
What is the Target price for UniCredit Stock?
According to TipRanks, UCG stock has a Strong Buy rating based on 12 Buy recommendations.
The average price forecast is €26.64, which has an upside of 25.6% on the current price level.
Saipem S.p.A.
Based in Italy, Saipem operates as a contractor in the oil and gas industry.
In contrast to UniCredit, Saipem has experienced a 57% decline in its stock value over the past year while also recording a 20% gain YTD. The company’s operations suffered from the supply chain disruptions that continued after the pandemic. Since then, Saipem has been working towards stabilizing the company.
Moving forward, analysts maintain a bullish stance on the company, projecting more growth. The company boasts a substantial backlog, indicating potential future earnings growth. According to consensus estimates, the company’s EBITDA is expected to be 2.5 times higher than FY22 levels by FY26.
Is Saipem a Good Investment?
SPM stock has a Moderate Buy rating on TipRanks, backed by two Buy and one Hold recommendations. The average price target is €1.97, which is 38.3% higher than the current trading level.
Conclusion
Analysts retain a positive perspective on UCG and SPM, anticipating favorable momentum and ongoing growth in their share prices.
