Mediobanca Securities

Equity trading

Since 2001, Mediobanca has carved out for itself a leading position in equity trading, on the back of its strategic positioning and indepth knowledge of markets.
A team of some 30 professionals comprising sales, analysts, traders and support staff now provides a daily integrated research, sales and trading service for Italian equities.

Mediobanca's equity trading activities can draw on:

a team of sales and traders with many years' experience at international institutions, whose objective is to build up relations with clients
a team of analysts covering some 100 companies listed on the Milan stock exchange
a sales-trading service providing information on trade flows and offering clients the possibility of trading blocks of shares
a tried-and-tested execution capability
swift settlement of trades

Who are our clients?

Mediobanca targets institutional investors looking for general advisory services on Italian equity market investment strategies. Some of our clients are leading Italian and non-Italian investors such as investment funds, pension funds, banks, insurers and hedge funds. Around two-thirds of our business is generated outside Italy, chiefly by UK, US, French, German and Swiss institutions.
Mediobanca does not provide captive investment services, but relies entirely on the quality of its services and professionalism of its sales force.

Sales

Long-standing relations with investors are our sales department's key strength. Clients have access to our indepth knowledge of the Italian market and its financial flows. Our business model is fundamentally client-driven. Meetings are held regularly with clients to promote products and outline investment ideas and strategies. Our close links with companies' senior management also enable us to act as an ideal nexus between issuers and investors, in the shape of themed events or roadshows held at major European financial centres.

Research

One of the distinguishing features of Mediobanca Securities is its close contacts and focus on the Italian market, which enable it to provide a quality service complementing that offered by the larger international houses. Our key strengths are our indepth knowledge of listed Italian companies (around 100 are covered) and our long-standing relations with their management. Research is carried out by several dedicated teams, which enables our analysts to respond quickly and efficiently to the main trends in the sectors they cover.

Our product portfolio includes:

morning notes and brief comments on key company events for investors needing information at short notice
full-length studies on individual companies
industry reports with more detailed analysis of specific issues.

Our regular Italian Stock Guide summarizes Mediobanca's vision of and investment ideas regarding the Italian stock market.

Rating statistics (second quarter 2010)

Proportion of all recommendations that are 'Outperform', 'Neutral', 'Underperform', 'Under Review' and 'Not rated'.

Recommendations

Proportion of issuers corresponding to 'Outperform', 'Neutral', 'Underperform', 'Under Review' and 'Not rated' categories to which Mediobanca has supplied material investment banking services.

Statistiche

Chinese Walls and other disclaimers

Conflict of interests arising between the activities in which Mediobanca is engaged, are managed by organizational and physical barriers, called "chinese walls", designed to restrict the flow of information between different Mediobanca's business areas. In particular, Investment Banking units are separated by physical and organizational boundaries from the Equity Research unit (i.e.: location in different buildings, inability to exchange e-mails, impossibility to share files, etc.).

Research note authors

The recommendations contained in the MB Securities section of this website have all been issued by Mediobanca staff employed at the Equity Research unit. The chief professional activity of such staff is to write and publish such recommendations. Their remuneration is not in any way linked to corporate finance transactions carried out by Mediobanca and/or companies forming part of the Mediobanca Banking Group.

Rating system - Methodology

6 months horizon
Relative to local & European indices

Outperform: >+10% performance vs benchmark

Neutral: -10% to +10% performance vs benchmark

Underperform: <-10% performance vs benchmark

Under Review: Fair value (and rating) under scrutiny for a possible change

Not Rated: Impossible to determine a fair value (and rating) due to either because there is no sufficient visibility on the company's key items or because it has not been finalized yet a complete analysis of the company

Our rating relies upon the expected relative performance of the stock considered versus its benchmark. Such an expected relative performance relies upon forecasts for the company's financials that we now consider accurate but that could change in the future as a consequence of unexpected events.

Our recommendation relies upon the expected relative performance of the stock considered versus its benchmark. Such an expected relative performance relies upon a valuation process that is based on the analysis of the company's business model / competitive positioning / financial forecasts. The company's valuation could change in the future as a consequence of a modification of the mentioned items.

Last update: 2/7/10