Unicredit is a top pick among European banks, with a bright outlook on profitability and ample room for growth. Its location puts it in a sweet spot to benefit from Germany''s massive EUR500bn infrastructure plan, which should boost lending and economic growth in the region. Since Andrea Orcel took the reins, the bank has seen a significant turnaround in profitability, thanks to smart capital allocation and an efficiency focus. With surplus capital on hand, Unicredit has exciting growth prospects ahead, beyond just acquisitions. We raise our target price to EUR73, reflecting that efficiency and faster loan growth, especially in Germany and Austria. If all that surplus capital was invested in organic growth, we see a path to a EUR85 blue-sky valuation. MEGA returns.