In this article, we will discuss the 12 Best Italian Stocks to Buy in 2025.
As per Deloitte, the broader Italian economy slowed down in 2024, with moderate growth. The service sector expansion was contrasted with continued weakness in essentially all other sectors, mainly in manufacturing and automotive. The consumer and business sentiments in Italy were low across 2024, in the context of weakness in the critical economies of the euro area too.
On the supply side, the broader GDP growth was only supported by the services sector in 2024, while essentially all other sectors witnessed a decline. With these impacts now behind us, what lies ahead for the broader Italian economy?
Inflation Is Expected to Remain Moderate, Says Deloitte
In Italy, inflation slowed down in 2024 and remained the lowest for well-established European economies, added Deloitte. That being said, electricity and gas prices were higher in Italy in comparison to other large European economies including France and Germany, influencing the competitiveness of Italian companies. In 2025, Deloitte sees inflation to remain below the levels expected in the euro area and the ECB target of 2%.
Therefore, moderate inflation, along with nominal wage growth, can result in a gradual recovery in real wages. In general, the broader Italian labor market witnessed a contraction last year. Notably, while the number of employed people continues to increase, hours worked have witnessed a decline, primarily in the industrial sector. Deloitte believes that the broader Italian economy will maintain moderate positive growth in 2025, mainly in line with the anticipated average for euro-area economies. While it can face slightly higher consumer inflation, the levels will be lower than the euro area average. BNP Paribas believes that Italy still has the second lowest inflation in the Eurozone after Ireland. However, as elsewhere, inflation increased in January because of less energy deflation.
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GDP Expansion on the Cards, Says Allianz Trade
As per Allianz Trade, Italy witnessed a strong recovery from the pandemic and was one of the best performers among the 4 major Eurozone economies. Even though GDP is now 5.6% above pre-pandemic levels, the broader economic activity witnessed a slowdown in recent quarters. It even stagnated (in real quarterly terms) in Q3 2024. However, private consumption growth resumed in 2024, with confidence recovering alongside the strong decline of inflation.
Moving forward, Allianz Trade sees private consumption picking up due to a recovery in income and an easing of monetary policy. Notably, a catch-up in NGEU spending is expected to make up for the partial recovery of investment activity. In 2025, the firm anticipates GDP to expand by 0.8%, followed by 1% in the following year.
Amidst these trends, let us now have a look at the 12 Best Italian Stocks to Buy in 2025
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Our Methodology
To list the 12 Best Italian Stocks to Buy in 2025, we used a screener and sifted through several online rankings. Next, we chose the companies having headquarters in Italy and in which analysts saw upside potential. Finally, the stocks were arranged in ascending order of their average upside potential, as of February 10. We also mentioned hedge fund sentiments from Insider Monkey’s database of 900 elite hedge funds, as of Q3 2024.
At Insider Monkey we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
12 Best Italian Stocks to Buy in 2025
12) Ferrari N.V. (NYSE:RACE)
Number of Hedge Fund Holders: 36
Average Upside Potential: ~5%
Headquartered in Maranello, Italy, Ferrari N.V. (NYSE:RACE) is engaged in designing, engineering, producing, and selling luxury performance sports cars. UBS upped the company’s price target to $584 from $513, keeping a “Buy” rating. Its results demonstrated the strength of the business model and the brand, with high-end demand exceeding supply despite macro conditions, says the analyst. Notably, Ferrari N.V. (NYSE:RACE) released its consolidated preliminary unaudited results for Q4 2024 and 12 months ended December 31, 2024, with annual net revenues of €6,677 million, up 11.8% YoY and total shipments of 13,752 units.
Furthermore, in 2025, the company expects a positive product and country mix, together with strong personalizations. Ferrari N.V. (NYSE:RACE) also expects an improvement in contribution from racing activities, implying higher sponsorships and commercial revenues linked to the better Formula 1 ranking achieved in 2024. The company’s strategic focus on sustainability and strong order book strengthens confidence in its future growth prospects.
Ferrari N.V. (NYSE:RACE) believes that lifestyle activities will expand its revenue growth rate in 2025, while it continues to invest to accelerate development and enlarge the network. Overall, the company’s financial results in 2024 were aided by a strong product mix and an increased demand for personalization.
11) UniCredit S.p.A. (OTC:UNCFF)
Number of Hedge Fund Holders: N/A
Average Upside Potential: ~5.1%
UniCredit S.p.A. (OTC:UNCFF) offers commercial banking services in Italy, Germany, Central Europe, and Eastern Europe. The company has its headquarters in Milan, Italy. On February 10, 2025, the Board approved the 4Q 2024 and FY 2024 consolidated results as of 31 December 2024. Its net interest income rose by 1.1% YoY to €3.7 billion, with a discipline of deposit pass-through, at an average of 34% in 4Q24, only marginally up as compared to the prior quarter. For 2025, UniCredit S.p.A. (OTC:UNCFF) remains focused on delivering strong returns to shareholders and setting the net profit guidance broadly in line with FY24.
Therefore, net revenue is guided more than €23 billion, with a moderate decline in FY 2025 NII, due to the anticipated lower interest rates environment and further compression of Russia. UniCredit S.p.A. (OTC:UNCFF) expects FY 2025 fees to be up mid-single digit percentage points compared to FY 2024, including the net insurance result. For 2027, UniCredit S.p.A. (OTC:UNCFF) expects a net profit of ~€10 billion, coupled with RoTE of more than 17% and an average FY 2025 – FY 2027 organic capital generation broadly in line with net profit.
UniCredit S.p.A. (OTC:UNCFF)’s investment case remains compelling, aided by an attractive geographic footprint, quality clients, and business mix. Furthermore, it remains well-positioned to absorb a normalization of interest rates and cost of risk and cost inflation.
10) Telecom Italia S.p.A. (OTC:TIIAY)
Number of Hedge Fund Holders: N/A
Average Upside Potential: ~8.1%
Telecom Italia S.p.A. (OTC:TIIAY) is engaged in the provision of fixed and mobile telecommunications services in Italy and internationally. The company is based in Rome, Italy. Kepler Cheuvreux upgraded the company’s stock to “Buy” from “Hold.” Telecom Italia S.p.A. (OTC:TIIAY) continues to focus on debt reduction which can place the company well for long-term growth. During Q3 2024, the company finalized the sale of NetCo to KKR, completing the transformation process. This led to a reduction in financial debt and the adoption of a new business model, allowing the company to compete more effectively in the market, courtesy of a greater focus on industrial components.
Elsewhere, Reuters reported that a treasury-led consortium submitted a new binding bid for Telecom Italia S.p.A. (OTC:TIIAY)’s subsea cable business, Sparkle. Notably, the proposal confirmed a Sparkle valuation of €700 million ($724.22 million). Sparkle has a 600,000 km cable network, transmitting information between countries in Europe, the Mediterranean, and the Americas. Therefore, it is deemed of strategic importance by the Italian authorities, reported Reuters.
Telecom Italia S.p.A. (OTC:TIIAY) further added that, during the quarter, cost containment actions targeted at increasing the level of structural efficiency of the domestic perimeter continued and ~80% of the target set for the current year was achieved. Its adjusted net financial debt after lease as of September 30, 2024 remained below €8 billion, down by over €0.1 billion as compared to the value immediately following the completion of the sale of NetCo.
9) Banca Mediolanum S.p.A. (OTC:BNCDY)
Number of Hedge Fund Holders: N/A
Average Upside Potential: ~9.7%
Headquartered in Basiglio, Italy, Banca Mediolanum S.p.A. (OTC:BNCDY) offers various banking products and services in Italy. In FY 2024, the company saw double-digit YoY growth in net commission income to €1,168.0 million as a result of strong managed asset inflows & positive markets throughout all asset classes. Its operating margin saw an increase of ~11%, driven by diversification, profitability & scalability of the business model. Banca Mediolanum S.p.A. (OTC:BNCDY) saw total net inflows of €10.44 billion, reflecting an increase of 46% YoY. This was aided by the growth of the customer base due to promotional initiatives, and the quality of investment services offered.
Notably, strong acceleration of flows, primarily fixed-income and IIS money market funds, resulted in the growth of 91% YoY to €7.64 billion in FY 2024 in the “net inflows into managed assets” category. Banca Mediolanum S.p.A. (OTC:BNCDY)’s growth prospects in 2025 are aided by a strong capital position, leaving plenty of room for both organic growth & shareholder remuneration. Banca Mediolanum S.p.A. (OTC:BNCDY) expects further CET1 strengthening in the expectation of implementation of final terms of Basel III in 2025.
8) Poste Italiane S.p.A. (OTC:PITAF)
Number of Hedge Fund Holders: N/A
Average Upside Potential: ~13.3%
Poste Italiane S.p.A. (OTC:PITAF) is engaged in providing postal, logistics, and financial and insurance products and services in Italy. The company is based in Rome, Italy. In the first 9 months of 2024, the company posted group revenue of €9,226 million, reflecting an increase of €423 million as compared to the first nine months of 2023, courtesy of the positive contribution from all strategic business units. On 30 September 2024, Poste Italiane S.p.A. (OTC:PITAF)’s total financial assets came in at €593 billion and showed growth of 2% as compared to €581 billion on 31 December 2023.
This change was because of positive net inflows on current accounts (+€5 billion), investment funds (+€3.2 billion), assets under administration (+€0.8 billion), and insurance reserves (+€0.7 billion), partially offset by negative net inflows on postal savings (around -€4.9 billion). Poste Italiane S.p.A. (OTC:PITAF), while highlighting the Bank of Italy estimates, stated that GDP grew moderately in Q3 and is expected to continue at this pace until the early months of 2025 and then might strengthen over a 2-year period (2025-2026), with the support of consumption and exports. Against this backdrop, Poste Italiane S.p.A. (OTC:PITAF) accelerated its performance throughout all lines of business in Q2 2024. The favorable financial performance seen in the first nine months of the year, mainly in the mail segment and on the net interest income, prompted management to upgrade the guidance of the year-end adjusted EBIT to €2.8 billion.
7) Stevanato Group S.p.A. (NYSE:STVN)
Number of Hedge Fund Holders: 11
Average Upside Potential: ~14.3%
Stevanato Group S.p.A. (NYSE:STVN) is engaged in the design, production, and distribution of products and processes to offer integrated solutions for bio-pharma and healthcare industries. The company has its headquarters in Piombino Dese, Italy. For Q3 2024, Stevanato Group S.p.A. (NYSE:STVN)’s revenue went up by 2% (3% on a constant currency basis) as compared with the same period last year, to €277.9 million. This growth was aided by a 6% growth in the Biopharmaceutical and Diagnostic Solutions (BDS) segment, offsetting a 15% fall in the Engineering Segment.
Notably, revenue from high-value solutions rose to 36% of total revenue in Q3 2024 as compared to 32% for the same period last year. This was fueled mainly by higher customer demand for high-performance syringes, and to a lesser extent, other products. While announcing its Q3 2024 results, Stevanato Group S.p.A. (NYSE:STVN) maintained its fiscal year 2024 revenue guidance and continues to expect revenue of between €1,090 million – €1,110 million.
Stevanato Group S.p.A. (NYSE:STVN)’s growth investments continue to accelerate, and in Q3 2024, its Latina project remained profitable at the gross profit level, while in Fishers, the company rolled out commercial production and generated its first commercial revenue. In Engineering, the actions taken by Stevanato Group S.p.A. (NYSE:STVN) helped to complete a handful of highly complex projects for key customers that were earlier delayed. Notably, the effects of destocking are anticipated to gradually improve into 2025, as the company sees some signs of stabilization in vial demand as customers work down inventories.
6) Ermenegildo Zegna N.V. (NYSE:ZGN)
Number of Hedge Fund Holders: 13
Average Upside Potential: ~15.4%
Founded in 1910 in Trivero, Italy, Ermenegildo Zegna N.V. (NYSE:ZGN) is a global luxury company with a leading position in the high-end menswear business. BofA upped the company’s price target to $10.40 from $8.90, keeping a “Buy” after the company reported Q4 organic revenue growth of 3% after 3 quarters of decline. Notably, the analyst believes that trends throughout all brands and regions saw an improvement sequentially and surpassed expectations. Also, the analyst says there is a greater visibility to revenue reacceleration for Ermenegildo Zegna N.V. (NYSE:ZGN).
In FY 2024, the Zegna segment’s revenues, including the ZEGNA brand, Textile, and Other, came in at €1,348.8 million compared to €1,322.0 million in FY 2023. The revenues in Q4 stood at €404.4 million, reflecting a growth of 5.0% YoY, driven by strong performance from the ZEGNA brand which more than offset the slowdown in the Textile division. The company anticipates 2025 to play out differently throughout various geographies.
While it has seen strong performance in the Americas and EMEA in the initial weeks of January, Ermenegildo Zegna N.V. (NYSE:ZGN) expects volatility in consumer demand in China. That being said, it remains prepared to navigate such challenges as a result of its focus on priorities. These priorities include building on the brand equity, focusing investments on key strategic projects, and doubling down on the existing strengths.
5) Eni S.p.A. (NYSE:E)
Number of Hedge Fund Holders: 11
Average Upside Potential: ~21.7%
Eni S.p.A. (NYSE:E) operates as an integrated energy company. The company has its headquarters in Rome, Italy. It witnessed resilient financial performance during Q3 and 9M 2024, despite a weaker trading environment, implying the strength of its business model. In Q3 2024, Eni S.p.A. (NYSE:E) delivered group proforma adjusted EBIT of €3.4 billion and adjusted net profit of €1.3 billion. During the quarter, its adjusted cash flow came in at €2.9 billion, which was aided by continuing progress in implementing its strategy, new project contributions, growth at the businesses related to the transition, and a focus on financial discipline and costs.
Eni S.p.A. (NYSE:E) delivered a performance ahead of expectations, and has demonstrated the resilience of its business model thanks to its increasingly advantaged asset portfolio, stringent cost and capital discipline, and strategic focus on growth and value creation. Apart from financial and project delivery, the company remains focused on portfolio high-grading, highlighting value, and maintaining a strong balance sheet. In another positive development, it has completed the construction of its largest battery storage system, the Guajillo plant.
Notably, the facility is expected to begin commercial operation by H1 2025. As per the company, Guajillo is expected to play a key role in stabilizing the local power grid and will enhance power efficiency in the region.
4) Buzzi S.p.A. (OTC:BZZUY)
Number of Hedge Fund Holders: N/A
Average Upside Potential: ~23.1%
Buzzi S.p.A. (OTC:BZZUY) is engaged in manufacturing, distributing, and selling cement, ready-mix concrete, and aggregates. The company has its headquarters in Casale Monferrato, Italy. On February 7, it released its preliminary results for the financial year 2024, with cement sales coming at 26.3 million tons, in line with last year, and ready-mix concrete sales at 9.7 million cubic meters. While the growth was steady in the US and China, driven respectively by the services sector and exports, in the Eurozone, the economy further weakened, impacted by sluggish domestic consumption and external demand. Buzzi S.p.A. (OTC:BZZUY) stated that sales prices favorably influenced the results.
In Italy, the construction market witnessed a slight strengthening due to the projects associated with the National Recovery and Resilience Plan (PNRR). At the end of the year, employment continued to grow, while inflation was below 2%, aided by the renewed decline in energy prices. Buzzi S.p.A. (OTC:BZZUY) highlighted that the momentum provided by PNRR has been supporting public building projects and infrastructure and continues to favour some segments of the non-residential sector.
Despite improvement in the trends in the latter part of the year, 2024 demonstrated some weakness in demand throughout most of the countries in which Buzzi S.p.A. (OTC:BZZUY) operates, apart from Poland and the Czech Republic. However, this momentum was offset by a favorable development in selling prices. Considering the preliminary available data, Buzzi S.p.A. (OTC:BZZUY) expects that the consolidated financial statements for 2024 will close with a recurring EBITDA of ~€1,270 million.
3) Brunello Cucinelli S.p.A. (OTC:BCUCY)
Number of Hedge Fund Holders: N/A
Average Upside Potential: ~78.8%
Brunello Cucinelli S.p.A. (OTC:BCUCY) is engaged in the production and sale of clothing, accessories, and lifestyle products. It is headquartered in Solomeo, Italy. Stifel Nicolaus analyst Daniele Alibrandi maintained a bullish stance on the company’s stock, giving a “Buy” rating. As per the analyst, Brunello Cucinelli S.p.A. (OTC:BCUCY)’s efforts to build exclusivity and trust with the help of strategic events and partnerships were recognized, improving the brand’s status and relationships. Such strategic initiatives, together with its defensive market exposure and promising growth opportunities, backed a “Buy” rating on the company’s stock.
On January 13, Brunello Cucinelli S.p.A. (OTC:BCUCY) released preliminary figures for the year 2024. The company’s revenues came in at €1,278.4 million primarily because of positive sales across the year. The Q4 2024 was also strong, in which the company saw a turnover of €358 million, the best result ever in absolute terms, reflecting an increase of 11.6% YoY. Notably, brand positioning, high level of craftsmanship, and brand appeal are some of the main factors that drove strong results.
Brunello Cucinelli S.p.A. (OTC:BCUCY) believes that strong opportunities continue to arise for its brand. This, together with exclusive positioning and promising prospects across all geographical areas and distribution channels, can support the company’s target of 10% growth for the years 2025 and 2026 and boosts its vision of doubling 2023 turnover by 2030.
2) Natuzzi S.p.A. (NYSE:NTZ)
Number of Hedge Fund Holders: N/A
Average Upside Potential: ~371.3%
Natuzzi S.p.A. (NYSE:NTZ) is engaged in the design, manufacture, and marketing of leather and fabric upholstered furniture. It has its headquarters in Santeramo in Colle, Italy. The company continues to see growing evidence of the strength of its long-term Brand/Retail project, which has been gaining momentum, making the conditions favourable to capture the full potential of the brands. Natuzzi S.p.A. (NYSE:NTZ) remains confident that its brands and retail strategy are well-placed for strong growth and it continues to focus on executing the long-term plan.
The company’s long-term plan includes improving the quality of Natuzzi S.p.A. (NYSE:NTZ)’s distribution to accelerate the Brand journey, fostering new market opportunities, enhancing margins, production simplification, and efficiency improvement, among others. Natuzzi S.p.A. (NYSE:NTZ) remains focused on optimizing its operating model and reducing costs throughout factories and offices in Italy and abroad.
The company continues to conduct a comprehensive review of its industrial operations in a bid to simplify processes, reduce working capital, and fuel further efficiencies. Natuzzi S.p.A. (NYSE:NTZ)’s efforts to optimize the footprint of its Asian operations continue to progress as planned. In Q3 2024, it completed the closing of its historical factory in Shanghai and shifted the production to the new plant located in Quanjiao, Anhui Province, China. The new plant will serve exclusively the Chinese market and provide industrial and transformation costs that are ~30% lower compared to the Shanghai plant.
1) Genenta Science S.p.A. (NASDAQ:GNTA)
Number of Hedge Fund Holders: N/A
Average Upside Potential: ~425.6%
Genenta Science S.p.A. (NASDAQ:GNTA) is a clinical-stage biotechnology company, which is engaged in the development of hematopoietic stem cell gene therapies for the treatment of solid tumors in Italy. Also, it has its headquarters in Milan, Italy. Maxim Group analyst Jason McCarthy maintained a “Buy” rating on the company’s stock, setting a price target of $21.00. The analyst’s rating is backed by a combination of factors related to the promising developments of Genenta Science S.p.A. (NASDAQ:GNTA)’s gene therapy platform, Temferon. The approval of a Phase 1 trial for Temferon in metastatic renal cell cancer (mRCC) by the Agenzia Italiana del Farmaco aligns with European Medicines Agency standards and happens to be a significant milestone.
Temferon is expected to provide a new experimental treatment to patients with late-stage mRCC. Also, the insights gained from Genenta Science S.p.A. (NASDAQ:GNTA)’s uMGMT Glioblastoma Multiforme (TEM-GBM) studies continue to inform and enhance the understanding, demonstrating Temferon’s potential to reprogram the tumor microenvironment and activate the immune system throughout diverse oncology landscapes. In another significant development, the company announced that it has strengthened its partnership with AGC Biologics, which is a global contract development and manufacturing organization (CDMO), by amending the Development and Master Services Agreement.
Notably, this amendment introduces an exclusive GMP suite at the AGC Biologics Cell and Gene Center of Excellence in Milan, dedicated to the manufacturing of Genenta Science S.p.A. (NASDAQ:GNTA)’s cell therapy product, ensuring compliance with cGMP standards. The move improves its production capabilities, potentially enhancing efficiency and reliability in the manufacturing processes.
While we acknowledge the potential of GNTA as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a deeply undervalued AI stock that is more promising than GNTA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.
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