Italy scales back plans to sell stake in Poste By Reuters
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 30 2024
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Source: Investing.com
- Italy Retains Majority Stake in Poste Italiane: Italy will keep 51% ownership of Poste Italiane, reversing plans to reduce the state's stake from 64% to as low as 35%.
- Challenges in Debt Reduction: The decision reflects challenges in using asset sales to manage Italy's significant public debt.
- Revised Decree for Poste Stake Sale: Following criticism, Italy plans to review a decree to sell a smaller stake in Poste, ensuring the state never goes below 51% ownership.
- Debt Reduction Program: Italy aims to raise about 0.7% of GDP through asset sales between 2025 and 2027 to address its high public debt relative to domestic output.
- Union Concerns and Government Plans: Unions express caution over the sale, urging the government to abandon divestment plans, citing potential lower returns compared to dividends from Poste.
Analyst Views on PST
Wall Street analysts forecast PST stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for PST is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
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About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
