Banca Generali shares have been suffering quite a bit over the last few weeks, even though the one just ended saw a hint of recovery. Yet the bottom line is going well. The stock could therefore be held back by the unflattering judgment of analysts who have an average rating of Neutral and an average one-year target price which expresses an undervaluation of around 6%.
Excellent first quarter for Banca Generali
Banca Generali closed the first quarter of 2024 with a consolidated net profit of 122 million euros, marking an increase of 47% compared to the 83.1 million in the same period of the previous year. Operating costs reached 68.3 million euros, with an increase of 7.2%, including 1.5 million euros of extraordinary charges. Core operating costs were 61 million euros, up 6.3%, aligning with the guidance of the 2022-2024 three-year plan. Furthermore, the capital position and liquidity improved further. Total assets managed and administered on behalf of clients reached a new historic high of 96.8 billion euros at the end of March, with an increase of 12.6% compared to the previous year and 4.3% since the start of the year. ‘year.
This result was driven by solid net inflow volumes and a positive asset performance, supported by the market recovery. Total net inflows for the first quarter of 2024 were 1.6 billion euros, growing by 8% compared to the same period of the previous year, showing an improvement in the product mix thanks to the increase in demand for products and services investment. In April, net inflows reached 644 million euros, an increase of 35% compared to the previous year, bringing the cumulative total since the beginning of the year to 2.3 billion euros, an increase of 15%.
CEO Gian Maria Mossa underlined that Banca Generali is aiming for the targets of the three-year plan and is preparing a new growth cycle, thanks to its relationships with companies and entrepreneurs and its commitment to developing new commercial channels. He also highlighted that growth in all business areas is confirmed by April’s trading results, indicating a recovery in demand for consultancy and diversification. The recent reorganization of the network is creating new opportunities and facilitating the recruitment of talent, making the bank an attractive hub.
The indications of the graphic analysis
The ongoing trend is bullish, but its fate depends on the support in the €36.15 area. A weekly close below this level, in fact, could favor a bearish acceleration. If it holds, however, prices could continue to rise according to the scenario indicated in the figure.
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