EWI: Latent Net Income Hits Priced Into Low Growth Outlook
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Valkyrie Trading SocietyInvesting Group LeaderFollow5ShareSavePlay(6min)CommentsSummaryThe iShares MSCI Italy ETF is heavily weighted to Italian financials, notably Unicredit and Intesa.EWI faces headwinds from rising IRAP taxes, latent windfall tax measures, and NIM pressure as European rates decline, impacting the net income outlook.Consolidation in Italian banking offers mixed prospects; share-based deals, corporate governance considerations, and government intervention dampen potential valuation uplift.EWI trades at 1.74x P/B, reflecting flat growth expectations amid a muted European economic outlook and sector-specific profit pressures. StockByM/iStock via Getty Images The iShares MSCI Italy ETF (EWI) follows the Italian listed market, heavily indexed to Italian financials as is still the case since our previous coverage, including more regional financials as well as someThis article was written byValkyrie Trading Society5.41K FollowersFollowThe Valkyrie Trading Society is a team of analysts sharing high conviction and obscure developed market ideas that are downside limited and likely to generate non-correlated and outsized returns in the context of the current economic environment and forces. They are long-only investors.They lead the investing group The Value Lab where they offer members a portfolio with real time updates, chat to answer questions 24/7, regular global market news reports, feedback on member stock ideas, new trades monthly, quarterly earnings write-ups, and daily macro opinions.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.