Stock picking

Ftse Mib, these 2 shares can rise by more than 30%

At the Ftse Mib, these 2 shares can rise by more than 30% according to experts.
Over the last two months, stock markets have experienced a period of growth, approaching all-time highs.
The Piazza Affari index also reached its highest level since mid-2008, with an extraordinary performance of 28% during 2023.
However, not all companies have followed this trend uniformly.
Despite the rally, some stocks are still trading at a discount to their historical average, providing an interesting opportunity for investors.
These 2 stocks, also present in the MSCI World index, outperform the index, but are also traded at attractive prices compared to their P/E ratio.
Let's see in detail which stocks are involved and why analysts expect an increase of more than 30%.
1) Intesa Sanpaolo The first stock that deserves the attention of investors is represented by the shares of the Italian bank Intesa Sanpaolo.
Over the course of 2023, the stock has risen more than 27%.
These stocks are currently trading at a significant discount of more than 20% to their five-year average P/E ratios.
According to FactSet analysts, this situation offers considerable upside potential, estimated above 3 euros (+31% upside).
Carlo Messina, CEO of Intesa Sanpaolo, shared optimism regarding the outlook for interest rates and growth in Europe.
Messina stressed that the bank is ready to take advantage of the moment when interest rates fall, stimulating growth in the areas of managed savings and insurance.
The CEO appeared confident about 2024, declaring that it will be a very positive year for Intesa Sanpaolo regardless of the interest rate scenario.
Speaking at the World Economic Forum in Davos, Messina reiterated his confidence in the Italian economy, expressing the need to address the issue of public debt.
He emphasized the strength of Italian household savings as a strength, but acknowledged that public debt remains an important, albeit sustainable, focus.
Messina has proposed a commitment to reduce public debt, freeing up resources to accelerate growth and address inequalities in the country.
2) UniCredit The second stock to consider is UniCredit, another major Italian lender, which has grown by 85% during 2023.
UniCredit shares are currently trading at a discount of more than 20% to the price ratio /earnings of the five-year averages, presenting an upside potential of approximately 26% (to 33.49 euros), according to the analysts' price targets.
Andrea Orcel, CEO of UniCredit, discussed the institution's prospects in Davos, focusing on the topics of interest rates and mergers and acquisitions in the banking sector.
Orcel highlighted the need for M&A to strengthen banks and support the economy, but stressed that two key conditions are currently missing: the completion of the European Banking Union and the need for more fundamentally aligned valuations.
Orcel shared his view on the Eurozone interest rate outlook, predicting an average similar to last year's in 2024.
He reaffirmed UniCredit's positive performance, also attributing it to ECB support and investor confidence.
Orcel confirmed his optimism regarding UniCredit's potential, highlighting the positive results of the transformation initiated during his mandate.
In conclusion, the shares of Intesa Sanpaolo and UniCredit present interesting upside potential, with significant discounts compared to their five-year averages.
The positive outlook regarding interest rates, confidence in the Italian economy and management's optimism help make these shares attractive to investors attentive to market opportunities.
However, it is important to consider the risks and challenges highlighted by key players in the banking sector.
read also This stock will rise 729% by 2027 according to analysts |DISCLAIMER The information and considerations contained in this article should not be used as the sole or main support on which to make investment decisions.
The reader retains full freedom in his own investment choices and full responsibility in making them, since he alone knows his risk propensity and his time horizon.
The information contained in the article is provided for informational purposes only and its disclosure does not constitute and should not be considered an offer or solicitation to the public for savings.|

Author: Hermes A.I.

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