the stock plummeted today. The reasons and what to do now

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The curtain falls on a nightmare session for Banca Generali which, after two increases in a row, was hit today by a violent and sudden sell-off.

Banca Generali collapses on the Ftse Mib with booming volumes

Filed yesterday with an increase of about one percentage point, the title tried to push forward, except to immediately show a bit of weakness.

In the early afternoon, a rain of sales started which led Banca Generali to end trading at 32.1 euros, after an intraday low of 31.11 euros, with a drop of 5.31%.

Today’s strong sells were fueled by booming trading volumes, given that more than 1.5 million shares passed the market at the end of the day, about five times the average of the last 30 days of just over 300 thousand.

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Banca Generali sunk by rumors about Generali

Banca Generali collapsed in the wake of some rumors reported by Bloomberg, according to which Generali’s idea of ​​signing a partnership with Guggenheim Partners would have waned.

The Trieste-based company reportedly shelved, at least for the moment, the project of this potential acquisition, due to the excessively high price and the worsening market conditions.

That was enough to sink Banca Generali which at the end of September had shot up and had gained almost 20% in a single session, driven precisely by the rumors of a potential acquisition of Guggenheim Partners that Generali could have financed with the sale of its controlled by Mediobanca.


Generali deal with Guggenheim Partners makes sense for Mediobanca

An operation which, moreover, at the time had been approved by analysts, including those of Equita SIM who had spoken of a sensible deal for the Piazzetta Cuccia institution.

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In any case, the Milanese SIM had not abandoned its caution regarding Banca Generali, which was also confirmed after the release of the third quarter accounts.

Analysts thus reiterated their “hold” recommendation on the stock, with a revised target price from 33 to 31.7 euros.

Banca Generali: what to do now? The judgments of some analysts

The lack of speculation linked to a possible sale of Banca Generali could still weigh on the stock in the short term.

It will be interesting to see what the investment banks’ reactions to the rumors of the last few hours will be, bearing in mind that the latest opinions expressed are positive.

Just in recent days Intesa Sanpaolo reiterated the “add” rating, with a target price of 33.5 euro, in the wake of the outlook provided by Banca Generale when presenting the accounts for the first 9 months of the year.

Deutsche Bank is also betting on Banca Generali, which recently renewed its invitation to buy, with a fair value slightly improved from 35.3 to 35.7 euros.

According to the analysts of the German bank, the messages transmitted by the management with the accounts of the third quarter 2022 should support a further re-rating of the title.

The article is in Italian

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