- The FTSE Italia All Share Banks index, which has gained more than 48% since the beginning of the year, slowed down (-0.33%) in the last month
- Debach (eToro): “Stellantis and STM are showing the first technical signs of a possible consolidation, leaving open the possibility of a rebound”
The driving force behind the Italian stock market is no longer the banks. The FTSE Italia All Share Banks index, which has risen by more than 48% since the beginning of the year, slowed down (-0.33%) in the last month. “The baton has been passed to the technology sector (+7.15%), with STMicroelectronics playing a leading role in attempting to bridge the gap left by the quarterly results, and to industrials (+5.44%), where Prysmian continues its run: fifth consecutive month of gains and nine new all-time highs in September alone,” Gabriel Debach, market analyst at eToro, tells We Wealth.
Rotation takes center stage on the Milan Stock Exchange
In contrast, defensive sectors suffered: utilities, energy, healthcare, and consumer staples were subject to profit-taking. The most obvious case is healthcare, which is struggling to recover: Amplifon is at its lowest since the beginning of the year, with a decline of more than 40% in 2025, and Diasorin has also hit new 12-month lows. “The slowdown in the banking sector against the backdrop of a still-growing FTSE MIB is the real news in Milan,” notes the analyst.
“This means that the index is no longer driven solely by banks, but is undergoing a phase of sector rotation: after months of financial rallying, investors are seeking returns in cyclicals and technology. This dynamic also reflects the global picture, where the US rate cut has reignited interest in semiconductors and industry, shifting the market’s center of gravity from safe-haven stocks to those more closely linked to the recovery.”
Leonardo among the stocks under scrutiny
Defense giant Leonardo remains among the stocks under scrutiny. “No signs of peace, growing geopolitical tensions in Europe, and an arms race that shows no signs of stopping continue to support the sector,” says Debach. In 2025, it has already recorded 20 new all-time highs, he notes, supported by solid fundamentals: orders of €11.2 billion (+9.7% year-on-year), revenues of €8.9 billion (+12.9%), free cash flow revised to €920-980 million, and debt down 27% to €2.2 billion.
“An uncertain environment, modest but resilient results, a discounted valuation, and a solid backlog, all accompanied by a stock that has been falling every year since its listing on the Milan Stock Exchange, make Ferretti interesting to monitor,” Debach continues. According to the expert, the company closed the first half of this year with modest but solid results, achieved in an environment characterized by trade and geopolitical tensions and price pressures. “The strategy of moving towards larger and more customized yachts, together with a fixed cost containment program, supports the 2025 guidance: expected revenues of €1.24 billion and margins towards 16.5-16.7%.”
Four stocks with compressed multiples
The analyst points out that only four stocks in the FTSE MIB are currently trading at compressed multiples: Campari, Nexi, DiaSorin, and Amplifon. Debach says that the market is valuing this group of companies at a discount compared to their history. “In addition, eleven stocks on the main Italian index have been trading with negative performance since the beginning of the year, signaling widespread weakness affecting the automotive, semiconductor (related to the automotive sector), luxury goods, beverage, and healthcare sectors. Of course, tariffs were the trigger, but the cracks had already been evident for months,” says the expert.
“Brunello Cucinelli is emblematic of this picture: from +28% in the first months of 2025, with 14 new all-time highs, to a 19% decline from its peaks. The stock even fell below its entry price on the FTSE MIB, penalized first by high valuations and then by the speculative attack in September,” Debach points out. According to the analyst, the management’s decision to bring forward the release of the accounts to face journalists helped to ease some tensions, but the real sign of a reversal would only come with a return above €108, a level that would interrupt the sequence of declining highs.
The case of Stellantis
Stellantis, the multinational automotive company, remains in trouble. “The €7.2 threshold is now the key support level that the market is watching, while the declining highs define a fragile structure. The current congestion is close to a breakout that will clarify the stock’s prospects,“ says Debach. ”STMicroelectronics, on the other hand, has not yet recovered from the 16% bearish gap at the end of July, but at least it has stopped falling,” he continues, explaining how the lack of further lows opens up the possibility of stabilization, a necessary prerequisite for an attempt at recovery and closing the gap.
Stocks ready to rebound
“Amplifon and DiaSorin embody the difficulties of the healthcare sector. The former has lost more than 40% since January and has slipped below the €14 support level, with no sign of consolidation,” says Debach. The latter has fallen about 30% from its January high of 27% and is hovering around €75. “The compression of multiples reflects, in both cases, not so much an immediate opportunity as a downsizing of expectations,” says the analyst. He concludes: “Amplifon, Diasorin, Campari, and Cucinelli remain trapped at their lows, with no credible signs of a reversal yet, except for those who want to anticipate the trend. Others, such as Stellantis and STM, are showing the first technical signs of a possible consolidation, leaving open the possibility of a rebound.”
