HSBC raises price targets for Greek banks, with Eurobank and Piraeus leading

ATHENS, Aug 22 (Reuters) – HSBC raised its price targets on shares of Greece’s four biggest lenders after posting strong first-half performances, saying Eurobank (EURBr.AT) and Piraeus Bank (BOPr.AT) ) were his first choices.

“Greek banks surprised us with stronger loan growth, faster revaluation of securities portfolios and robust fee income in the second quarter,” HSBC said in a research report.

Shares of Greek banks, down 25% in the past three months despite a strong improvement in operating performance, remain undervalued on European Union-wide recession fears, he said. declared.

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“From a valuation perspective, we believe the most promising Q2 results come from Piraeus,” HSBC said.

Piraeus Bank’s strong pre-funding core earnings growth and good capital generation make its tangible price-to-book ratio of 0.24 “extremely attractive”, the lowest among its EU peers, while the The bank’s balance sheet cleanup is largely complete, he said.

Earlier this month, Piraeus Bank reported lower April-June net profit from the first quarter on relatively lower trading revenue, but raised its full-year forecast as new loan disbursements took a hit. exceeded targets. Read more

HSBC raised the share price target by 38% to 2.7 euros, reiterating a “buy” rating. It also raised its price target on Eurobank shares to 1.65 euros from 1.45 previously, citing its “strong balance sheet and superior profitability”.

Targets on Alpha Bank (ACBr.AT) and National Bank (NBGr.AT) were raised to 1.45 and 4.55 respectively from 1.25 and 4.15 previously.

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Reporting by George Georgiopoulos; Editing by Jan Harvey

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