In a study dedicated to the financial services sector, Morgan Stanley raised its recommendation from “weight in line” to “overweight”, with a price target raised from 79.7 to 91.7 euros.
The broker justifies the increase by wanting to take a less defensive position, which until now has led it to favor securities such as LSEG.
The analyst also mentions an attractive combination of synergies that he believes will gain momentum in 2024/2025, possible mergers and acquisitions (M&A) or returns to shareholders on the back of the group’s debt reduction.
At the same time, spot activity should benefit from a less challenging benchmark, he says, which could lead to an upward revision of market forecasts with an expected recovery in capital markets activity.
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