A stock to buy and one to sell on Piazza Affari (according to Deutsche Bank)

On Piazza Affari there is only one stock to buy according to Deutsche Bank in the current economic context.
The investment bank cut the target price to almost 30 European shares in view of the new earnings season and decisions on the state of the Italian economy by the three main rating agencies.
Among this there is also an Italian bank which until now has benefited from the increase in rates but which has now been downgraded to "hold".
Let's see Deutsche Bank's recommendations in detail and the reasons behind the experts' advice.
Positive outlook for the utilities sector Deutsche Bank's report begins with an analysis of the European utilities sector.
Despite recent cuts to price targets, the bank strikes a positive tone in its outlook.
This may surprise some investors, considering the downward trend in price targets.
However, Deutsche Bank says investors are overestimating the impact of rising bond yields and becoming too pessimistic about the prospects for renewable energy.
Integrated utilities, such as RWE, Enel, SSE and E.ON, receive particular attention from Deutsche Bank analysts.
Despite a cut in Enel's target price from 7.3 to 7.00 euros, the bank reiterates its "buy" rating on this stock.
This suggests that despite the current challenges, Deutsche Bank believes these companies are well positioned to face the future and offer growth opportunities to investors.
Italgas promoted by Deutsche Bank analysts dedicated a good part of its report to downgrades and cuts in price targets, but there is one exception.
Deutsche Bank analysts raised their rating only on one company on the Piazza Affari: Italgas, the Italian natural gas company.
Despite having reduced the price target by 5%, from 6 to 5.7 euros, the bank promoted Italgas to "buy." This decision is interesting, especially in a context where other stocks are being downgraded.
It represents a clear expression of confidence in Italgas' growth prospects by Deutsche Bank, despite the challenges and cuts to price targets influencing the market.
Graphically, Italgas shares are attempting to react to the sales that began in April.
The trend line that unites the lows of 2020 and 2022 seems to have offered a valid edge for buyers.
However, in the 5.10 area the first resistance has already slowed down growth ambitions.
Beyond this reference the movement could restart towards targets of 5.35 and 5.70 euros.
Negative indications would instead arrive below 4.90, prologue to the return to the 4.70 area at least.
Italian banks: Fineco Bank rejected Another key point highlighted in the Deutsche Bank document concerns Italian banks and the impact of rising interest rates.
According to the investment bank, the increase in rates is going from being a supporting factor to an obstacle for Italian banks.
This claim is based on the idea that higher yields on bonds are curbing client appetite for assets under management, leading to a “cash sorting effect”.
In particular, Deutsche Bank downgraded Fineco Bank to "hold", lowering the target price to 13.9 euros per share from the previous 16.1 euros, due to the "cash sorting" effect, the phenomenon whereby customers they move uninvested money into cash-like investments, such as short-term government bonds or savings accounts.
This phenomenon negatively affects the performance of Fineco Bank's share price and is expected to remain negative in the coming months.
This change in perspective highlights how important it is for investors to carefully monitor the development of interest rates and their impact on banks.

Author: Hermes A.I.

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