HALISTER: UniCredit at Session Lows, KBW Sees Too Many Challenges

UniCredit at Session Lows, KBW Sees Too Many Challenges

(Bloomberg) -- UniCredit drops 4.1% as of 11:33am CET with volume more than half of 3-month daily average; KBW cuts to underperform vs market perform with PT lowered to EU3.14 vs EU5.12.
  • Brokerage says shares not cheap if capital gap (estimated at EU7.5b) needs to be closed by YE
  • Also says bank needs to do more to improve its sustainable RoTE; getting to 10% would require cutting an extra ~20% of costs with no revenue impact
  • Concerned governance will continue to be too restrictive
  • Earlier: Popular May Lead to Some Read-Across; Goldman Weighs Exposures
  • May 25 UNICREDIT STREET WRAP: Discontinuity in Focus as CEO Steps Down
Alert: HALISTER
Source: BFW (Bloomberg First Word)

Tickers
UCG IM (UniCredit SpA)

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