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BofA Ups Telecom Italia Price Target on Court Payout, Stock Conversion Plans

MT Newswires·01/07/2026 03:49:01
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03:49 AM EST, 01/07/2026 (MT Newswires) -- BofA Global Research raised Telecom Italia's (TIT.MI) price objective to 0.64 euro from 0.57 euro, with an unchanged buy rating, citing the expected 1 billion-euro settlement from the Italian government and the planned savings share conversion. "TI continues its evolution towards a 'normal' company with a long-awaited Saver share conversion proposal, which has been publicly endorsed by its largest shareholder. This should add to liquidity and potentially open the door for incremental [Poste Italiane (PST.MI)] investment following its dilution... TI remains cheap, in our view, with positive exposure to consolidation and sovereign cloud thematic tailwinds," according to a Tuesday note. The research firm also upgraded its equity valuation following the court's authorization of the full cassation payment and adjusted its ordinary/saver targets to account for the proposed share conversion, assuming complete shareholder participation in full-year 2026. As such, BofA analysts lifted their ordinary dividend estimates to 2.25 euros per share for full-year 2026 and anticipate the dividend per share to rise at a 12.5% compound annual growth rate.