Jefferies started covering Greek banks. The American investment house reports that Greek banks are not the typical recovery story as many think, however, the momentum of interest income is strong and offers great upside in the short term.
Wood: Buy recommendation and higher target prices for Greek banks
The target price it gives for National Bank is 6.60 euros with a buy recommendation – estimating that it could soon start distributing a dividend from the profits of FY 2022, while it maintains a hold recommendation on Eurobank and Piraeus Bank with a target price of 1.65 euros and 2.50 euros respectively, and gives an underperform recommendation for Alpha Bank with a target price of 1.10 euros since, as it explains, the risks to its profitability are not sufficiently valued by the market.
At the same time, it warns that the picture of bad loans will show discrepancies between banks.
Jefferies notes that it remains relatively bullish on the broader outlook for asset quality, but believes that National Bank is well positioned, with low NPE (6.1%) and high coverage (82%), creating room for a gradual normalization of provision levels .
Conversely, despite the more favorable NPL mix, Jefferies sees Alpha Bank’s low coverage (39%) as less justified, and with the NPE ratio still elevated (8%), it sees the risk that the pre-forecast gains will continue to be absorbed by high forecasts in the coming years.
Latest News
The 12 Tourist Traps to Avoid in the Greek Islands
Visit less popular islands for cheaper prices and fewer crowds
German Min. Lemke: «Climate crisis poses immediate threat to our health; well-being»
Europe recorded more days of “extreme heat stress” (with the ‘feels like’ temperature exceeding 46 degrees Celsius) than ever before
OECD: Major Spike in FDIs in Greece over 2021-23 Period
The international organization calculates an average of 6.7 billion USD in Greece over the 2021-2023 period, up from 4.15 billion USD in 2017-2019
How TikTok Lost the War in Washington
Combination of coordinated efforts by its critics and missteps by the company led to the law forcing a sale or ban of the popular app
Greece in the Top European Destinations for Aussies in 2024
This year 16% of surveyed Australians are planning a trip to Greece
Developing the Blue Carbon Economy in Greece
Can Greece make money by protecting its marine environment?
EIB Appoints Greece’s Ioannis Tsakiris as New VP
Ioannis Tsakiris started the new role May 1 after spending 15 years at the European Investment Fund (EIF) and serving as Greece’s Deputy Minister for Development and Investments
Two Greek Beaches in Top 50 in the World
Both Greek beaches were on the list of the best beaches in Europe too
Eurostat: Greece 20th out of 26 European States in Hourly Average Wage
According to figures released by Eurostat, the Benelux Grand Duchy of Luxembourg, one of Europe’s hubs for finance, is in first place
Greek Property Renovation Surge amid Economic Constraints
This has led to a notable escalation in renovation costs, with average prices per square meter exceeding previous norms and reaching even 1,000 euros in premium locations