(Il Sole 24 Ore Radiocor) - Milano, 16 feb - UniCredit shares were sharply higher in Milan trade, after Deutsche Bank raised its target price on shares of the Italian bank to 77 euros from a previous 64. Deutsche Bank has a "hold" recommendation on UniCredit shares.

At 0910 GMT, UniCredit shares were up 2.04% at 73.04 euros, outperforming the benchmark FTSE MIB index, which was 0.63% higher at 45,719.08 points Deutsche Bank raised its target price after UniCredit last week revised its strategic plan. The new plan envisions roughly 30 billion euros in shareholder remuneration in 2026-2028 and up to 50 billion in the next five yeas, conditional on the achievement of profitability and capital targets.

UniCredit's strategic plan foresees a compound annual growth rate (CAGR) for revenue of 5% in the 2026-2028 period and loan growth above 5%, Deutsche Bank analysts note. This is expected to bring the bank's net profit to 13 billion euros by 2028, with CAGR of 7% and a return on tangible equity (RoTE) of 23%. According to Deutsche Bank, the 2026 target is in line with analyst estimates while that for 2028 is 10% above the analyst consensus. "However, these targets aren't lacking execution risks," they said. Deutsche Bank analysts also note that UniCredit's competitive position in Italy could be tested with the process of consolidation in Italy's banking sector, as some competitors gain market share in the segment of small and medium-sized enterprises and in consumer.

credit, factors that could limit the bank's growth ambitions.

(RADIOCOR) 16-02-26 10:30:34 (0176) 5 NNNN