IITSF - Intesa Sanpaolo: Enjoying A Favorable Environment But I'm Not Buying In
2024-06-01 03:01:34 ET
Summary
- Intesa Sanpaolo offers a diversified business with strong balances of interest income and non-interest income.
- Even though the loan portfolio decreased, the bank has benefited from rate hikes with higher NII, while also reducing its efficiency ratio.
- The Italian macro picture is looking favorable with historically low unemployment, minimal inflation, and a more narrowed spread against German bonds.
- Despite the favorable guidance from Intesa, their 67.3% 1Y stock rise makes me cautious and leads me to opt for a hold rating, considering that banks are a cyclical business.
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Intesa Sanpaolo: Enjoying A Favorable Environment, But I'm Not Buying In