Kepler Cheuvreux has upgraded Banca Generali to "buy" from "hold," raising the target price to €61.50 from €60. This decision follows stronger-than-expected 2025 results and what the broker views as an unjustified drop in the bank's share price. The upgrade reflects a positive outlook, supported by the bank's fourth-quarter performance and robust financial metrics.

Banca Generali's fourth-quarter results included a 42% surge in net profit, reaching €131 million, partly due to a €39 million tax recovery. Recurring net profit also rose, increasing by 7.4% to €89 million. Revenues saw an 8% year-on-year increase, hitting €278 million, surpassing market expectations. Net interest income and net commissions also saw growth, indicating solid performance across key business areas.

The bank's guidance for 2026 anticipates net inflows exceeding €6.5 billion, with over €4 billion in assets under management. Projections include net interest income of €330-340 million. Kepler Cheuvreux has adjusted its earnings estimates, anticipating €3.21 per share in 2026. The broker believes the market's response to AI concerns was excessive.