Jefferies reaffirms its 'buy' recommendation and €41.6 price target on UniCredit, ahead of the release of the Italian banking institution's results and a resumption of share buybacks expected on May 7.

The stock still has good ingredients to outperform, thanks to a 7% EPS CAGR over 2023-26, a point on the business plan that can keep investor engagement high, and re-rating potential," the broker believes.

According to Jefferies, a valuation multiple of six times expected earnings in 2026 'implies that the market is not integrating earnings stability with a structural rise in eurozone interest rates'.

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