Yesterday the banking sector in Piazza Affari returned to great turmoil as it Intesa Sanpaolo will ask the ECB to distribute the 2020 dividend. Is it time for the sector to collect? What to wait from now on and why?
In the next few days, until Friday, the short technical picture of the stock indices will have to give more indications and clarify whether the fall in the last week was a false signal or not. There are however other interesting graphical signals to be monitored, in fact the rise of yesterday could be the beginning of a price explosion for this bank. We refer to Illimity Bank (MIL: ILTY) which closed the trading day at 7.76 + 9.45%.
The company provides private banking services and investment and trading services in Italy. The managing director is Corrado Passera. Earnings are expected to grow by 65.59% per year.
But how much is the title worth according to the classic discounted cash flow model? The current parameters do not allow us a reliable evaluation and therefore we must stick to the analysts’ evaluations and consensus estimates. The fair value target price set by the consensus is € 10.35 per share with a current underestimate of approximately 33.37%.
Yesterday’s hike may be the start of a price explosion for this bank
What do the charts look like? Are there ideal conditions to shop and take advantage of this gap between current prices and stock valuations?
The explosion in prices yesterday accompanied by the increase in volumes seems to be the starting point for further strong increases. Since the beginning of the year, the stock has marked the minimum at 5.32 and the maximum at 11.60. The company was listed in the year 2019 at 7.60.
The best investment strategy
Buy on the market with stop loss at 7.03 and keep for ambitious short and medium-long term goals. First level of support at 7.30. On the upside, we do not see significant resistance up to 8.08 (non-primary) and exceeding 11.60. This is a title to buy and keep for a long time and as it could do better than the sector.
We will proceed in steps.
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