BofA starts Fincantieri at 'buy' on underwater acquisitions, naval revenue boost

By Reuters News

** Bank of America (BofA) initiates coverage of Italian shipbuilder Fincantieri FCT.MI with a "buy" rating, ahead of expected M&A benefits and accelerating naval revenue

** The broker notes the market has not yet priced in the upside from the company's new underwater acquisitions which will broaden its position in civil and dual-use markets

** BofA expects naval revenue to accelerate from 2028 onwards, seeing the division as a revenue driver due to a strong pipeline, a ramp-up in production capacity and shorter construction times

** BofA sets a PT of €17 ($19.2) - compared to its current trading price of €12.27 - as the shipbuilder offers above-sector EPS growth, while trading at one of the lowest valuation multiples among its peers

** Out of nine analysts that cover Fincantieri, eight rate the stock "buy,"​ and only one analyst rates "hold" - LSEG data

($1 = 0.8851 euros)

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