Italian companies Intesa Sanpaolo (IT:ISP) and Unipol Gruppo Finanziario (IT:UNI) are famous financial stocks among investors. Analysts have assigned a Moderate Buy rating to Unipol, projecting a potential 45% upside in the share price. On the other hand, Intesa has been given a Strong Buy rating with a growth rate of 37%.
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An additional advantage lies in the higher dividend yields offered by these stocks, making them an ideal choice for investors seeking passive income.
Now, let’s delve into some details.
Intesa Sanpaolo S.p.A.
Intesa is a leading banking group in Italy, providing a wide range of banking and financial services to around 13.6 million customers. The group also has a strong presence in Europe, with around 950 branches serving 7 million customers.
Analysts remain highly bullish on the stock, considering its strong financial performance during the pandemic and its commitment to return substantial amounts of capital to shareholders through dividends and buybacks. The bank has a dividend yield of 6.9%, as compared to the industry average of 2.1%.
Following a rise in first-quarter net profit that exceeded expectations, Intesa Sanpaolo increased its earnings outlook for 2023, attributing the positive performance to significantly higher net interest income.
Intesa Share Price Target
According to TipRanks’ consensus forecast, ISP stock has a Strong Buy rating, based on nine Buy versus three Hold recommendations.
At an average target price of €3.19, analysts suggest a growth of 37.4% on the current price.
Unipol Gruppo S.p.A.
Based in Italy, Unipol is a financial company focused on providing banking and insurance services. The company is among the leading dividend-paying stocks in Italy, with a yield of 7.7%.
The company reported solid first-quarter earnings for 2023 in May, with a net profit of €284 million. This is up from €161 million reported in the same quarter last year. The company’s direct insurance premium jumped to €3.87 million from €3.45 million, driven by 21% growth in the life segment and a 5.5% increase in the non-life business.
On TipRanks, the stock has two Buy ratings from Barclays and Berenberg Bank. Two months ago, Alessia Megni from Barclays reiterated his Buy rating on the stock, predicting a 40% growth in the share price.
Five-star-rated analyst Michael Huttner from Berenberg Bank also maintained his Buy rating on the stock three months ago. His price target of €7.0 suggests an upside of 46.8%.
Unipol Share Price Forecast
Based on two buy ratings, UNI stock has a Moderate Buy rating on TipRanks. The average target price is €6.85, implying a change of 43.5% from the current price level.
Conclusion
Analysts are bullish on these two Italian shares, which have good upside potential. Both Intesa and Unipol are also ideal additions for investors seeking healthy dividends.
