De Longhi, Fiat, Generali, Parmalat, UBI: Italy Equity Preview

The following companies may be active in Italian trading. Stock symbols are in parentheses and share prices are from the previous close.

Italy’s benchmark FTSE MIB Index (FTSEMIB) lost 23.4, or 0.1 percent, to 21,764.31.

Assicurazioni Generali SpA (G) : Mediobanca Securities and MainFirst upgraded Europe’s third-largest insurer to “outperform” and “buy,” respectively. The shares gained 1.4 percent to 15.78 euros.

Banca Popolare di Milano Scrl (PMI IM): Sanford C. Bernstein & Co. said in a note that results reported by Italian banks showed “two common industry trends: low credit demand coupled with margins pressure and better capital ratios.” Banca Monte dei Paschi di Siena SpA (BMPS IM) remains Bernstein’s preferred name among Italian banks.

Separately, Goldman Sachs Group Inc. highlighted that quarterly results by Italian banks were “overall above expectations, thanks to trading and lower provisions.” Popolare di Milano lost 1.9 percent to 2.22 euros. Monte dei Paschi gained 0.3 percent to 92.15 euro cents.

De Longhi SpA (DLG) : Deutsche Bank AG initiated coverage of the household-appliance maker with a “buy” rating. The shares rose 0.3 percent to 8.78 euros.

Enel Green Power SpA (EGPW) : Barclays Capital increased its price estimate on the renewable energy unit of Italy’s biggest utility to 2 euros from 1.9 euros. The shares lost 1.4 percent to 1.91 euros.

Fiat SpA (F) : Fiat SpA Chairman John Elkann said May 14 the Italian carmaker wants to open a headquarters in Asia to go along with those it already has in Europe, North America and Brazil. “We hope to do more in Asia where today we don’t have a satisfying presence,” he said at a conference outside Siena, Italy. Fiat shares fell 0.6 percent to 7.1 euros.

Fondiaria-SAI SpA (FSA IM): The insurer said May 14 that its first-quarter net loss narrowed to 24.9 million euros from 92.3 million euros a year ago, while premiums fell 15 percent to 2.99 billion euros. Stock market regulator Consob also ruled that UniCredit won’t have to make a full takeover bid for the company after entering into a shareholder agreement with Premafin Finanziaria SpA, the insurers’ controlling shareholder. Fondiaria shares fell 3.9 percent to 6 euros.

Landi Renzo SpA (LR) : UniCredit Research upgraded the maker of injection systems for alternative fuels to “buy” from “hold.” The shares declined 1.9 percent to 2.38 euros.

Maire Tecnimont SpA (MT) : Gruppo Banca Leonardo cut its recommendation to “underweight” from “buy.” The shares sank 33 percent to 1.79 euros.

Mediolanum SpA (MED) : BofA Merrill Lynch Global Research upgraded the stock to “buy” from “neutral.” The shares dropped 2.1 percent to 3.87 euros.

Parmalat SpA (PLT) : Intesa Sanpaolo SpA (ISP) Chief Executive Officer Corrado Passera ruled out a counterbid for Parmalat SpA, he told reporters May 14 near Siena, Italy. A financing package for Groupe Lactalis’s bid for the dairy company is “not on the table,” he said. Parmalat fell 0.2 percent to 2.63 euros.

STMicroelectronics NV (STM) : Europe’s largest semiconductor maker had its price estimate trimmed to 10 euros from 10.5 euros at Royal Bank of Scotland Group Plc. The shares dropped 1.6 percent to 8.01 euros.

UniCredit SpA (UCG) : Italy’s biggest bank may provide financing for Groupe Lactalis’s bid to purchase the shares it doesn’t own in Parmalat SpA, UniCredit Chief Executive Officer Federico Ghizzoni told reporters May 14. UniCredit shares rose 1.8 percent to 1.7 euros.

Unione di Banche Italiane SCPA (UBI IM): The banks said first-quarter net income rose 70 percent to 64.6 million euros, according to a statement distributed by the Italian exchange.

That compares with the 67 million-euro average estimate of 12 analysts surveyed by Bloomberg. The shares lost 2 percent to 5.76 euros.

Editors: Raj Rajendran, Jeffrey Donovan

To contact the reporters on this story: Andrew Davis in Rome at abdavis@bloomberg.net; Francesca Cinelli in Milan at fcinelli@bloomberg.net.

To contact the editor responsible for this story: Craig Stirling at cstirling1@bloomberg.net; Andrew Rummer at arummer@bloomberg.net.

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