HALISTER: UniCredit Rises on Board Changes Report; Cap, Strategy in Focus

UniCredit Rises on Board Changes Report; Cap, Strategy in Focus

(Bloomberg) -- UniCredit rises as much as 3.9% after Sole reported bank’s top investors met to discuss board reshuffle; vol. ~14% of 3-mo. daily average after 22 mins of trading.
  • Banca IMI (hold), Equita (hold) say potential changes in management team may speed up process toward a rights issue
    • Banca IMI highlights capital hike would be aimed at strengthening the capital base that currently offers a limited buffer (25bps) on SREP requirements
    • Equita calculates EU5b would be needed to increase CET1 at 12% with dilution of 10% on P/TE and ROTE 2017 from 7.6% to 6.5%
  • Banca Akros (buy) says a change at the helm may relaunch group; still, a capital increase at current market prices would be highly dilutive for shareholders
    • Notes stock cheap
RELATED:
  • May 13: UniCredit Capital Target Looking a Bit Less Safe, Barclay Says
  • UniCredit is trading on 5.6x next year’s earnings vs 8.8x for the Stoxx 600 Banks index according to Bloomberg data
  • Stock has fallen 12% month-to-date vs a 5.4% fall in Stoxx 600 Banks index; is down 42% YTD vs a 21% fall in SX7P index
Alert: HALISTER
Source: BFW (Bloomberg First Word)

Tickers
UCG IM (UniCredit SpA)

Topics
Management Changes

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