Is it Worth Investing in BPER Banca Stocks as Prices Drop?

Is it Worth Buying BPER Banca Stocks as Prices Fall?

With the release of the first quarter results for 2024, investors have raised doubts about whether it is a good idea to purchase BPER Banca stocks amid the price slump.
Despite a significant 57% increase in net profit compared to 2023, reaching 457 million euros, the market reacted with uncertainty, causing a drop in BPER stocks on the Ftse Mib.
To determine if it is the right time to buy BPER shares, we need to examine the factors that have influenced this trend.

Performance Overview and Concerns

BPER has shown solid performance, with a strong equity position and low credit risks.
Additionally, the net interest margin saw a 16.2% increase compared to the previous year.
However, confirming the 2024 guidance, which predicts a slight decrease in the net interest margin, has raised concerns among investors.
This decline is attributed to a potential reduction in the bank’s margin, linked to a less restrictive monetary policy.

Another source of concern revolves around the Superbonus.
The Ministry of Economy and Finance is working on a proposal to extend tax credits from 4-5 years to 10 years, which could negatively impact BPER’s profits throughout 2024.
The bank tied 180 million euros of net profits to tax credits in 2023 and around 70 million in the first quarter of 2024.
If the government decides to change the regulations, BPER could face significant losses.

Positive Signals and Investment Opportunities

Despite the uncertainties, there are some positive signals.
Analysts predict a 3% increase in adjusted profits between 2024 and 2025, and BPER itself has stated that it may revise its goals for 2025.
BPER’s CEO, Gianni Franco Papa, confirmed that the bank is ahead of its targets and may announce changes to its strategic plan.

For those interested in investing in BPER stocks, the price drop could represent an opportunity.
However, it is crucial to consider uncertainties related to monetary policy and governmental changes regarding the Superbonus.
If you are willing to take risks, this may be a good chance to buy at lower prices, but caution and a careful risk assessment are recommended before making a decision.

Operational Strategies with UniCredit’s Turbo Certificates

After failing to break the resistance around 5 euros, BPER Banca reversed course, dropping by almost 4 percentage points in Thursday’s session.
The descent could continue in the upcoming sessions until testing the former resistance around 4.50 euros, below which prices could decline further to 4.20 and 4 euros.
Reaching these levels could present a buying opportunity on weakness, potentially compromising the bullish trend in place since the beginning of the year.

For long positions on BPER Banca, it might make sense to use a UniCredit Turbo Open End certificate with ISIN DE000HD3YY94.
The certificate is based on BPER Banca and currently has a barrier 17.12% away.

For short positions, it could be appropriate to use the UniCredit Turbo Open End Short certificate with ISIN DE000HD57SZ3, with a barrier 14.50% away based on BPER Banca.
It’s essential to remember that this barrier acts as a stop-loss, automatically closing the position when touched.

UniCredit’s Turbo Open End certificates eliminate the issue of time constraints in investments while avoiding the compounding effect.
However, they are complex financial instruments.
When trading, setting a stop-loss based on personal needs and proper money management rules remains crucial.

Discover all UniCredit’s Turbo certificates for more insights on trading strategies.