Numbers from UCG not good enough for us. We will close here -3.6%.
Headline profit beat was driven by one-off provisions that lowered LLP.
Both revenue & operating income were lighter than expectations – and weaker than Italian peers.
We think it could get ugly and close for a small loss.
NOT JOINING IN THE RALLY TODAY
Monday • 18 August 2014 • 16:30
For us it is one of the best stories out there in financials and definitely in Italy.
Get periphery exposure but in a liquid name.
Good numbers on 5 Aug beating expectations and due upgrades. We think around 10%.
Capital is good and improving. Added 90bps Q-Q. NPLs moving the right way. Loan losses in non core halved YoY.
Trades on 0.7 BV.
Underperformed ISP by 17% this year and trades cheaper on various multiples.
Happy buying it outright here or against ISP.