• Brokerage Jefferies initiates coverage of Italian cash-for-gold trader Gens Aurea with a "buy" rating, seeing opportunity for consolidation in a highly fragmented market

• It sets an initial PT at €15 ($17.51), implying 56% upside from Wednesday's closing price

• Noting the high fragmentation of the European gold recycling market, the brokerage deems Gens Aurea well positioned to gain market share through superior scale, selective M&A and organic expansion

• "As gold prices rise, the Group passes part of the benefit to customers through more competitive pricing, supporting higher volumes, stronger store productivity and share gains," Jefferies says

• It adds the group offers a lower commodity risk compared to traditional gold miners, thanks to its hedging strategy limiting exposure to its core earnings and valuation from fluctuations in gold prices

• Jefferies is the first broker to initiate Gens Aurea since its Milan bourse debut in July, according to LSEG data

($1 = 0.8568 euros)

(Reporting by Mirko Miorelli)