Morgan Stanley resumes Poste with 'overweight' on TIM synergies

By Reuters News07:29 (UTC), 13 October 2026 Updated

** Morgan Stanley resumes coverage of Italy's Poste Italiane PST.MI with an "overweight" rating following the completion of its tender offer for Telecom Italia TLIT.MI, seeing the takeover of as the "next chapter" for the firm

** The brokes sees the acquisition as a driver for "meaningful" earnings and dividend accretion, as well as beneficiary to cash position with a "credible" €700 million ($782.39 million) of targeted synergies

** "The combined business plan expected in 1Q27 should provide greater clarity on synergy delivery," MS adds

** The brokerage sees retained cash after dividends reaching €1.1 billion and €1.2 billion in 2028 and 2029, with adjusted earnings per share (EPS) growing 8% to 10% in the same period

** MS sees further upside coming from AI and consolidation in the Italian telco sector, with financial unit BancoPosta benefiting from higher interest rates

** Shares in the company are up around 1.4%, trading at €24.7 versus Morgan Stanley's new PT of €29

** Out of 13 analysts that cover Poste Italiane, 11 rate the stock "strong buy" or "buy," and 2 rate it "hold" - LSEG data

($1 = 0.8947 euros)