POP. MILANO

Pop. Milano U/G at MS. Its a good U/G

 

• Pop. Milano Raised to Overweight at Morgan Stanley
• I think it is a good U/G. A name we like and have been looking at last few days. Feel they have been dragged down with the rest of the sector last week. For us they are the best way to play Italian banking sector. The fact that they are Milan based and essentially deal with professionals means they are leveraged into the good side of an improving Italian economy. Like the many other they are cheap on a BV metric.
• Currently the government has a clause which stops any take over. Along with being leveraged into the best side of the improving Italian economy you also have the massive catalyst of the government clause changing( as many expect) and a takeover coming.