After the presentation of the 2021-2025 business plan, Equita Sim increased Illimity Bank’s target price by 18% to 13 euros per share. The valuation corresponds to 10.5 times the profits of 2022 and takes into account a better endowment of capital and greater visibility on the
prospects for digital banking.
The plan focuses on 4 priorities that should contribute positively to the growth of the company: (i) acceleration of volumes in the core business, (ii) greater diversification of revenues, with greater importance from activities with low capital absorption, (iii) maintenance a high level of liquidity and balanced funding mix, (iv) stability on the capital front (CET1> 15%).
Furthermore, the analysts of the Milanese SIM consider the development of B-ILTY, a digital banking platform dedicated to companies, interesting, given the particularly large potential market (c.1 million target companies). However, the speed of penetration remains to be verified.