On Friday, Bank of America maintained its Buy recommendation on Euronext, with a price target of 118 euros, after the company's annual results were described as "decent".

In a reaction note, the broker emphasizes that the stock market operator's performance last year was modestly above consensus, while noting that its synergy target for 2024 has been revised upwards from 100 to 115 million euros.

According to the broker, most of the good news stems from the integration of Borsa Italiana, which it considers to be the key element of the deal.

"The acquisition of Borsa Italiana, when completed, will make Euronext a better company from our point of view", writes BofA in the note.

The professional considers that Euronext is already the undisputed leader in IPOs and cash transactions in Europe, but points out that from the end of 2024 it will benefit from an integrated derivatives platform that it can in turn grow.

"We continue to believe that Euronext is undervalued, with market sentiment ignoring the positive effects of integration", he continues.

"With a share price trading at 12.5 times expected earnings next year, a significant discount to peers, we believe the stock offers clear potential for value creation", concludes BofA.

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