UniCredit Price Objective, Forecasts Revised as BofA Notes 'Undemanding' Valuation

07:01 AM EDT, 09/14/2026 (MT Newswires) -- BofA Global Research raised its price objective and forecasts for UniCredit (UCG.MI) as it took note of the Italian banking group's continued "undemanding" valuation and addressed five misconceptions about the company. "UniCredit's valuation remains undemanding, in our view, given its [returns on tangible equity] and outlook to deliver further cost and RWA efficiencies. We see significant value in its prospects to deploy capital to shareholders, either in the form of distribution, volume growth and/or via M&A. Consolidating fragmented banking markets can come with significant value creation and this potential is undervalued, in our view," analysts said Monday. "With a ROTE of c.26% in 2028e, UniCredit is one of the most profitable banks globally." Among the misconceptions analysts identified is one related to the Commerzbank (CBK.F) situation. The research firm views the idea that UniCredit, which is currently at peak capital consumption with its 48% stake in the German lender, will need to launch a new offer or consume more capital to buy Commerzbank's minorities to attain a domination agreement as "misplaced." "Capital will rebuild fast as organic generation runs at c.300bps per annum and we estimate that for every c.10% increase in their CBK stake, [common equity Tier 1] consumption falls by c.20-30bps. Also at current valuations, we would argue M&A optionality doesn't require a CET1 of 15%+," BofA added, noting that UniCredit is one of its top stock picks in the banking sector. As such, the Italian stock's price objective was changed to 113 euros from 100 euros, while the buy rating was reiterated. Financial estimates over the 2026 to 2030 period were also revised, including higher total revenue and adjusted EPS projections, taking into account the consolidation of its stake in Commerzbank.