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Mediobanca SpA MB

Rating as of

Morningstar’s Analysis

Valuation
Currency in EUR
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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Mediobanca Capital Allocation Rating: Standard

Johann Scholtz, CFA Equity Analyst

Analyst Note

| Johann Scholtz, CFA |

We assess Mediobanca’s capital allocation as Standard. We believe the decision to shift new investments in wealth management is the correct one. Mediobanca has executed several small, bolt-on acquisitions in this segment. Mediobanca will have to execute well in building out its wealth management presence to deliver the required returns. It is too early for us to judge its success. We are encouraged that Mediobanca is taking an incremental approach and not looking for a large, headline-grabbing, “transformational” acquisition. Large mergers and acquisitions often fail. Mediobanca is also investing to increase its retail deposit funding base. Reducing Mediobanca’s reliance on wholesale funding will ultimately reduce risk and could support higher valuation multiples. We maintain our no economic moat rating and our EUR 10.50/share fair value estimate.

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Company Profile

Business Description

Mediobanca is an Italian banking group that was founded as a pure investment bank. It has three operating units: corporate and investment banking, consumer finance, and wealth management. Historically, Mediobanca had a significant portfolio of equity investments in some of its clients. After a period of aggressively selling assets in its principal investments division, its stake in Italy’s leading insurer, Generali, now makes by far the bulk of Mediobanca's principal investments portfolio.

Contact
Piazzetta Enrico Cuccia 1
Milan, 20121, Italy
T +39 288291
Sector Financial Services
Industry Banks - Regional
Most Recent Earnings Jun 30, 2016
Fiscal Year End Jun 30, 2022
Stock Type
Employees 5,063