Unicredit increases aggregate position in Alpha Bank to 26%

Unicredit increases aggregate position in Alpha Bank to 26%

Italy's second-largest bank, Unicredit, has significantly increased its aggregate position in Alpha Bank to 26%. This strategic move follows Citigroup's recent upgrade of Unicredit's stock to a "buy" rating, citing higher earnings forecasts and potential M&A opportunities [1].

Citigroup's analysts have raised their 2026-2027 earnings per share (EPS) estimates by 3-5% due to the additional income generated from Unicredit's stakes in Commerzbank and Alpha Bank. The brokerage also attributes the upgraded forecasts to revised net interest income (NII) modeling, which includes a potential benefit from a deposit hedge with a notional value of 183 billion euros ($214.24 billion) [1].

The investment bank sees an "all-in capital return yield of around 10-11% and additional M&A optionality," with its revised net profit forecasts now broadly in line with consensus estimates. Citigroup has set a new target price of 74 euros, offering a 15% expected total return (ETR) [1].

Shares of Unicredit are trading at 67.07 euros, up 1% from the previous close, after rising as much as 1.3% on the day. The stock has gained 74.28% year-to-date, including today's rise. Out of 19 analysts, 13 rate the stock "strong buy" or "buy," six "hold," and no analysts rate the stock "strong sell" or "sell" [1].

The increase in Unicredit's stake in Alpha Bank aligns with its broader strategy of enhancing its portfolio through strategic investments and potential M&A activities, reflecting its commitment to growth and profitability.

References:
[1] https://www.tradingview.com/news/reuters.com,2025:newsml_L8N3UJ095:0-citi-resumes-unicredit-with-buy-on-capital-return-m-a-optionality/