Italy’s leading banking group, UniCredit S.p.A. (IT:UCG), yesterday received a Buy rating from J.P. Morgan analyst Delphine Lee, signaling additional upward potential in its share price. Over the last five days, UniCredit has garnered three more Buy ratings, reinforcing positive sentiments from analysts and enhancing its investment outlook. Overall, the stock has received a Strong Buy rating on TipRanks.
The UniCredit share price has grown by a huge 68% so far in 2023. Recently, in September, the stock experienced a continued rise, reaching its highest level since January 2016. This was mainly driven by the bank’s announcement of a €2.5 billion share buyback in 2023. UniCredit has set a capital distribution target of at least €6.5 billion for 2023, representing a substantial increase from the €5.25 billion in 2022. The stock’s performance solidifies its position as the leading performer among eurozone bank stocks in 2023.
UniCredit is a major player in the European banking sector, which serves around 15 million customers globally and provides a wide range of financial services.
What Are Analysts Predicting?
Yesterday, analyst Lee confirmed her Buy rating on the stock while raising the price target from €30 to €32. This implies a growth rate of 41% in the share price. Lee is a highly-rated analyst on TipRanks and covers banking stocks in European markets.
Four days ago, Goldman Sachs analyst Chris Hallam also maintained his Buy rating, forecasting an upside potential of 48%.
Prior to that, analyst Carlo Tommaselli from Societe Generale recommended buying the stock with forecast gains of 21%.
Analysts are bullish on the stock and have expressed confidence in the bank’s underlying fundamentals. Looking ahead, they project the company to achieve profits in the range of €3.2 to €3.3 billion in the second half of 2023, accounting for additional provisions for non-performing assets and a windfall tax.
UniCredit Share Price Target
The TipRanks consensus indicates a Strong Buy rating for UCG stock, supported by unanimous Buy recommendations from nine analysts. The forecasted UniCredit share price target is €30.80, reflecting a potential positive change of approximately 36.4% in the share price.
