BofA Lifts Price Objective, Estimates for Poste Italiane After Telecom Italia Supports Takeover Offer

04:20 AM EDT, 07/22/2026 (MT Newswires) -- BofA Global Research on Tuesday raised its price objective and earnings forecast for Poste Italiane (PST.MI), after Telecom Italia's (TIT.MI) board unanimously approved the Italian postal services company's takeover offer. Under the voluntary tender and exchange offer, Poste Italiane will pay a consideration of 1.67 euros and 0.218 newly issued Poste Italiane ordinary shares to each shareholder of the telecommunications group that accepted the offer, which went live on July 20 and end on Sept. 11. "Our scenario analysis suggests the announced deal with TIM, if it is approved, has the potential to create significant value with c.25% EPS accretion by 2029e. Further prospective M&A would contribute to create fewer and more profitable competitors. The [average revenue per user] in highly concentrated markets, is nearly 2x higher than in Italy, which is the lowest in the [European Union]," analysts said. Against this backdrop, the research firm increased its price objective to 32 euros from 28.80 euros and reiterated its buy rating. BofA also lifted its dividend per share assumption for full-year 2026 to 1.35 euros from 1.29 euros.