With the Intesa transaction on UBI, interest on bank shares returned. The bank risk hypothesis has reopened scenarios that awaken investors’ fantasies. In particular, there are 4 equities that are closely affected by the hypothesis of new mergers between institutions. And among these, one is perhaps the most credited with being the new UBI. A stock with great potential, which could run thanks to the banking risk. Let’s analyze this title with an analysis by the ProiezionidiBorsa Studies Office.
Bper at the center of risk
Most analysts agree that continued concentration of the banking system will be necessary. The aggregation process must continue to make our banking groups more solid and competitive at European level. The most accredited hypothesis is that after Intesa’s move to UBI, it is up to Unicredit to choose the next prey. Analysts think of Bper Banca, Banco BPM and Monte Paschi Siena.
B for Bank (MIL-BPE), would have an advantage over the other two. It would bring in over 500 UBI branches that Intesa was obliged to sell. Branches that will pass under Bper within the next six months. But it is not certain that Unicredit is the ideal partner of the Emilian bank. One possible scenario envisages an equal alliance between Banco BPM and Bper Banca. An event that would strengthen the two banks and displace Unicredit.
A stock with great potential, which could run thanks to the banking risk
Whatever happens, the Bper Banca stock has shown some strength for some sessions. Stock prices have been moving in a side channel since early June. This has an upper edge of 2.70 euros and an area of 2.10 / 2.15 euros as a lower border. Strong price movements will occur only with the exit of the stock from this rectangle.
So it will be necessary to pay attention to a weekly close over 2.70 euros for a new bullish phase. But a closure below the 2.10 / 2.15 euro area must also be monitored. In the first case, a close above 2.70 would lead the action towards a first psychological target of 3 euros. But the prices would not stop, the race would continue up to 4.00 euros. Here they would close a gap left open with the session of 24 February.
On the other hand, a close below the area of € 2.10 would bring prices back to absolute lows of € 1.8.
to know more
Speaking of stocks, this stock has been literally flying on the Milan Stock Exchange since March. To find out what it is, read who.
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