Goldman Sachs Starts Banco BPM at Buy, Sees Revenue Diversification Driving Growth

Goldman Sachs initiated coverage of Banco BPM with a Buy rating and a price target of €15.70 in a note this week, highlighting the Italian lender’s shift towards more balanced revenue streams as a key driver of future growth.

The bank’s analysts said Banco BPM is well-positioned to withstand falling interest rates as it reduces reliance on net interest income and increases its share of fee and commission revenue.

According to the note, the recent acquisition of asset manager Anima is expected to lower net interest income to around 50% of total revenue by 2025, while fee income rises to 45%.

Goldman also pointed to Banco BPM’s strong cost discipline and the potential for further growth from its strategic initiatives.

These factors, combined with a more diversified earnings profile, are expected to provide resilience against changing market conditions and boost returns for investors.

The coverage comes as Banco BPM remains at the centre of speculation over potential mergers. Earlier this year, UniCredit withdrew a takeover approach after failing to secure approval under Italy’s “golden power” rules.

More recently, Reuters reported that Italian Economy Minister Giancarlo Giorgetti confirmed the government would set conditions on any possible tie-up, with Credit Agricole Italia and Monte dei Paschi di Siena identified as potential partners.