SanPaolo IMI "overweight," estimates raised

01/10/06 - Merrill Lynch

LONDON, January 10 (newratings.com) - Analysts at Merrill Lynch maintain their "overweight" rating on SanPaolo IMI (PAO), while raising their estimates for the company. The fair value is set to €17.50.

In a research note published this morning, the analysts mention that the company reported robust results for F3Q. SanPaolo IMI is likely to beat EPS expectations this year, with its minimal execution risks, the analysts say. Merrill Lynch believes that the company would be able to achieve its 2008 net income target of €2.5 billion in 2007. The EPS estimate for 2006 has been raised from €1.04 to €1.07.