Buy Unicredit Shares: Quotation and Forecast
Published: March 23, 2021 by Andrew
Unicredit is the second largest Italian banking group and one of the most important in Europe, so it is normal to reflect on whether to buy Unicredit shares is a good investment or not.
The banking sector is not in a very prosperous situation at the moment but perhaps this is one of the reasons that push investors to take an interest in a stock like this, which at the moment is decidedly “economic”.
To understand and evaluate the Unicredit share, we examined numerous factors, including:
- The financial situation of the group
- Future prospects for the bank
- Industry analysts’ forecasts
Our guide will try to show you what the current fundamentals situation of this bank is and what the future possibilities are, trying to prepare you for what will happen in the markets.
You can decide one thing right away: The intermediary to invest.
To buy Unicredit shares, it is advisable to use a CFD Broker like eToro, which is reliable, safe and without commissions.
Here is a list of the best online trading platforms on the market, choose freely among these brokers, they are all regulated:
Min. Deposit: 50€
Min. Deposit: 100€
Min. Deposit: 50€
Min. Deposit: 250€
Min. Deposit: 100€
Min. Deposit: 250€
Real time quotation of Unicredit Shares price
Unicredit Shares: a little history
Unicredit was born from the merger of Unicredito and Credito Italiano in 1998 and is based in Milan.
The history of this, like many other banks, is full of reversals, mergers and acquisitions that have led it to become the second largest national banking group after Intesa Sanpaolo.
The expansion began in 2005 with the acquisition of the German HVB-Group which brings Unicredit to Europe and specifically to Germany, Austria, Croatia and Poland.
Unfortunately, the 2008 crisis cut the legs of the group, causing a loss of 29%. A series of downsizing measures managed to keep the bank standing, which is confirmed to be quite solid.
Unfortunately, non-performing loans also make themselves felt in subsequent years, Unicredit misses the promised objectives and between 2014 and 2016 the share price collapsed, losing about half of its value.
Currently this bank is one of the most stable institutions in Italy and one of the safest in Europe, it has sold most of its non-performing loans and has entered into partnership agreements with large companies such as Alibaba.
Unicredit is present in 18 countries around the world, with 88 banks of the group in Europe alone.
How to Buy Unicredit Shares
Unicredit is listed on the Italian Stock Exchange and this suggests you to open a securities account at your bank to buy Unicredit shares.
This option is the most classic but also quite expensive. You need capital to invest to buy a share package, you have to bear the costs of opening and maintaining the account, paying the stamp duty and commissions for the operations performed.
If you want to save, don’t pay for the securities account, don’t pay stamp duty and don’t pay commissions, there are CFD Brokers.
They are intermediaries that allow you to negotiate with Contracts for Difference, not directly with shares, and this makes them cheap and accessible to anyone, all you need is a few hundred euros to deposit in the Broker’s account.
Another advantage of these brokers is the ability to aim both up and down and earn (if the forecast is correct) even when the stock price collapses.
Where to buy Unicredit Shares
At this point you are wondering how to choose these brokers? Where to invest? They are all the same? What about security?
We will answer all these questions by saying that brokers are not all the same, you must choose only the regulated ones and safety is determined by the license in their possession.
This license must be issued by a body of proven authority, such as our CONOSB or CySEC.
The brokers presented in this guide are all safe and regulated, you can freely choose from the list we have included in the introduction.
If you want some advice, to buy Unicredit shares, the most suitable brokers are: eToro, ForexTB and Trade.com.
At the end of this article you will find the links to sign up for free with these brokers and start with tests in Demo, thanks to which you can:
- Buy the Unicredit CFD if you have forecast a rise in the share price.
- Sell the Unicredit CFD if you have predicted a drop in the share price.
eToro is one of the safest intermediaries in the world, with a large number of licenses for each country in which it operates.
Its trading platform, so simple and intuitive, has convinced over 10 million users and below we see it with the Unicredit CFD in a screenshot:
How do you buy Unicredit shares with eToro?
- Register for free on eToro
- Log into your Demo or real account (by depositing at least € 200)
- Select the Unicredit CFD and click on “Trade”
- Decide whether to buy or sell the shares and how much to bet in the operation
Traders looking for automatic investment systems on eToro will be able to take advantage of a truly revolutionary tool: Copy Trading.
This is a feature that allows you to copy the operations performed by the most experienced traders and you will be able to choose them directly on eToro.
Copy Trading will replicate all the transactions made by these investors on your account, automatically and free of charge.
This way you can get the same results as the best investors, without doing anything!
To give you an idea of the returns of some traders who use eToro, we took a screenshot in the “People” area:
Click here and choose which trader to copy
ForexTB is a rapidly expanding Broker, which owes part of its fame to a Trading Course that has quickly become the most downloaded in the industry.
This course is a pdf that explains the basics of online trading in simple terms and lists the most effective strategies for becoming a successful trader.
The course is free, download it now from the link below:Click here and download the Trading Course for free
But the advantages of ForexTB are not limited to the course, it is a Broker with a regular and prestigious CySEC license, valid throughout Europe and allows you to trade through two trading platforms, safe and free:
- Metatrader is a very professional platform, complete and full of indicators of all kinds.
- The Web Platform is simple, intuitive, fast and accessible from any device, without installing anything.
To buy Unicredit shares on ForexTB you will have to follow these 4 steps:
- Register on ForexTB
- Choose the trading platform
- Select the Unicredit CFD and click on Buy (or on Sell to sell short)
- Decide the amount to invest
Trade.com has become a very successful Broker, it is sure, it has a CONSOB license but above all it allows you to open an account with half the average amount required by other CFD intermediaries.
With only 100 euros, on Trade.com you can start investing in the markets, even starting with a few euros on each operation performed.
Trade.com also offers two trading platforms to meet the needs and habits of all types of investors. In fact, there are those who are used to MT4 and those who prefer the simplicity of the Web Platform, with Trade.com they are both free.
Here is the Unicredit CFD on the Trade.com Web Platform:
To buy Unicredit shares on Trade.com you must follow these instructions:
- Register for free on Trade.com
- Log into your Demo or real account (by depositing a minimum of € 100)
- Select the Unicredit CFD and click on “Buy” to buy or on “Sell” to sell short
- Decide how much to invest in the operation
If you are looking for a real technical analysis manual, you must necessarily take a look at the Trading Course developed by Trade.com, it is complete, clear and full of examples.
This course is totally free, here is the link to download it:Download the Trading Course for free by clicking here
Unicredit Business Model
UniCredit SpA provides banking and financial services to over 25 million customers, and ranks second in the ranking of Italian banking groups, after Intesa SanPaolo spa.
The group is listed on the Milan Stock Exchange and is part of the FTSE Mib index.
The bank can count on nearly 4,800 branches, of which 1,700 are abroad.
The Unicredit business model is based on the segments:
- Commercial Banking Italy
- Corporate & Investment Banking
- Commercial Banking Germany
- Commercial Banking Austria
- Central-Eastern Europe
Unicredit offers retail, corporate and private banking services; credit, trading and investment services; leasing, investment and credit services; insurance solutions; and financing solutions.
The group is also involved in financing projects and managing assets for individuals, companies and institutions.
The company operates in Italy and other European countries, as well as in America, Asia and other countries of the world.
Let’s see the relevant financial data of Unicredit:
- Listing: Italian Stock Exchange (UCG) and Frankfurt Stock Exchange (CRIN)
- ISIN: IT0005239360
- Foundation: 1998
- Headquarters: Milan
- CEO: Jean Pierre Mustier
- Sector: Banking
- Turnover: € 18.839 billion (2019)
- Net profit: € 3.373 billion (2019)
- Employees: 84,245 (2019)
Is it worth to buy Unicredit shares?
Unicredit shares together with all those of its competitors are subject to frequent fluctuations and uncertainties. But this is precisely what makes them so interesting and attractive to investors and speculators.
The solidity of the Unicredit group is proven but this concerns the fundamentals and the economic situation, not the shares.
The price of this stock has always been very volatile and dependent on the decisions of the ECB and on the Italian and European economic trend.
In the graph below we can see very well that the stock does not have a defined trend and has not had one even in recent years, so it is worth buying Unicredit shares as long as you understand its trend.
For these strategies, which involve many operations carried out with a certain frequency, the CFD Brokers we have seen are the ideal intermediaries, because you save on commissions.
Among Unicredit’s competitors we find the large Italian banks and the main European banking groups:
- ING Group
- Intesa Sanpaolo
- BNP Paribas
- UBI banca
Unicredit Shares Forecast
Unicredit was born from a merger, like many other banks, but then it has never stopped acquiring small and large institutions and expanding, this has also led to take on the debts of many banks and to frequently fluctuate the share price.
In fact, despite the economic stability, this group is very heterogeneous and has to manage a large number of branches in many countries, trying to maintain a delicate balance and at the same time make profits!
In the short term, as we see below, the Unicredit stock has recovered a lot after the collapse of the markets in March 2020, but now the forecasts are uncertain:
In the long term, buying Unicredit shares is considered a good investment as long as the prices are so “low”. But in the short term, analysts believe the stock is overvalued compared to the current economic situation.
Here are the short-term estimates of some of the major investment banks that have expressed their opinion on this stock:
- BNP Paribas cut Unicredit shares from an “outperforming” rating to a “neutral” rating.
- Keefe, Bruyette & Woods cut Unicredit shares from an “outperforming” rating to a “market performance” rating.
- Berenberg Bank has cut Unicredit’s shares from a “buy” rating to a “pending” rating.
- Deutsche Bank Aktiengesellschaft has cut Unicredit’s shares from a “buy” rating to a “pending” rating.
- Jefferies Financial Group reiterated a “neutral” rating on Unicredit shares.
Unicredit Shares target price
To estimate a one-year price target, we looked at the forecasts of 14 Wall Street analysts.
The 12-month average target price for Unicredit shares is € 12.08.
Despite the medium / long-term upside target, there are currently 11 pending valuations and 3 purchase valuations for the stock, which, as we have repeated several times, could make some “slips” in the short term.
The economic stability of Unicredit is well established and this is reflected in the long-term forecasts, which are mainly bullish.
As we have seen, however, the stock is famous for its volatility and this implies great attention in buying Unicredit shares, especially if you want to make a profit in a short time.
Fortunately, with CFD Brokers it is possible to aim both upwards and downwards, so you can follow the fluctuations of the stock and earn even when the price collapses, if you make the right choices.
Whatever strategy you decide to adopt, in the short or long term, up or down, do the tests on the Demo account first, so you can practice without risking your money.
Here are the links to register for free to the Demo accounts offered by the main CFD Brokers:
- Access the eToro Demo account for free by clicking here
- Register on ForexTB and try the Demo account by clicking here
- Register on Trade.com and try the Demo account by clicking here
Analysts believe this to be a good long-term investment while in the short term, the stock swings could be high.
The 12-month average target price for Unicredit shares is € 12.08.
In the long term, the forecasts are on the upside, but in the short term the stock could also retrace.
With CFD brokers like eToro, they are safe, reliable and commission free.