Assicurazioni Generali shares have been lifted by hopes around potential mergers and acquisitions in Italy's financial sector, so they could be at risk if nothing happens, Keefe, Bruyette & Woods' William Hawkins says in a research note. KBW cuts its recommendation on the Italian insurer's stock to market perform from outperform. "We still take the structural view that all major shareholders in Generali seek to create value in the shares that can also benefit smaller financial investors," Hawkins says. "However, the recent share price movement suggests to us that there is at least a 15% strategic premium in the Generali share price." Banca Monte dei Paschi di Siena is the biggest shareholder in Generali with a 13.3% stake, and has drawn takeover interest from Intesa Sanpaolo and Banco BPM. Generali shares trade 0.8% higher at 42.24 euros. (adria.calatayud@wsj.com)