The Athens Stock Exchange stands out in one of Goldman Sachs‘ top picks among Europe’s emerging markets, with the American bank pointing out that the Greek market presents the risks of regional markets, but its shares are cheap.
Thus, Goldman Sachs increases the target price to 1,200 points from 1,075 points in its previous report. He points out that the valuation is more stable over time than in the short term, considering that there is a stable relationship between the valuation of Greek shares and domestic interest rates.
MSCI Greece outperforms
The report highlights that in the short term, Greek stocks are trading quite closely with the “core” European banks, relative to their respective emerging market stocks. MSCI Greece has outperformed its European bank peers as European banks have significantly underperformed due to the recent banking turmoil. However, the report in predicts a slightly higher performance of MSCI Greece in the future (+9% compared to +7% of CEEMEA)relation to the other shares of the Central and Eastern European countries of CEEMEA,.
“Often, the market may view concerns about the US debt ceiling as a growth risk, suggesting that emerging markets exposed to the US may underperform. Heading into the summer, we show a preference for Brazil over Mexico, South and Southeast Asia and MENA (Middle East and North Africa countries), over non-Asian regions in general, and Greece in the context of Europe’s emerging markets.” , notes the Goldman Sachs analyst.
Greece, Qatar and Turkey
Outside of Asia, there are only 3 emerging market countries where the report predicts 10%+ returns based on valuation and oil. These are Greece, Qatar and Turkey, as the latter’s stock returns are likely to be affected by the weakening of the Turkish lira.
The upside is around 8% over the next twelve months, while in valuation terms, the trailing-twelve-month P/E ratio stands at 8.6 times, below Goldman Sachs’ target of 8. 9 times and 12.4 times for emerging markets. Earnings per share are estimated to increase by 8% over the next twelve months, with analyst consensus slightly higher at 9%, while the dividend yield is estimated at 5%.
Latest News
Greenhouse Gas Emissions: 4% Decrease in EU, 0.3% Rise in Greece in Q4 2023
The EU's GDP remained stable with a marginal 0.2% increase in fourth quarter of 2023
HEREMA CEO: High Expectations from Natgas Exploration Off Crete
3D seismic surveys were conducted in the two offshore blocks west and southwest of Crete by a consortium comprised of ExxonMobil and HelleniQ Energy
EC Spring Forecast: Greek GDP at 2.2 in 2024, 2.3% in 2025
Besides Greek GDP inflation is expected to drop by a substantial 2.4% in 2024, settling at 2.8% from 4.2% in 2023 with 2025 recording a further decline to 2.1%
EBRD Raises Outlook for Greek GDP to 2.3% in 2024, 2.6% in 2025
Key downside risks remain, associated with possible delays in deploying Recovery and Resilience Facility (RRF) funds and weaknesses in key export markets and tourism source countries
Real Estate Insights: Athens’ Top Areas with the Highest Yields
In the first quarter of 2024, Korydallos in the Piraeus region and the burgeoning Attiki Square retain their top spots with impressive yields of 6.3%
ELSTAT: Inflation at 3.1% in April
Olive oil (63.7%), fruit (11.6%), fish (10.6%), and mineral water (12.5%) registered the highest increases annually
Greek Sunlight CEO Joins Industry Titans at Choose France Summit
At the heart of the "Choose France Summit" was the discussion surrounding the production of lead-acid and lithium-ion batteries, crucial for the green transition and storage of renewable energy.
Insights into Greece’s Real Estate Landscape; Consumer Expectations and Challenges
The study indicates that while 66% of Greeks find recent real estate price hikes concerning and liken them to a "bubble," over half (56%) still anticipate further increases.
Athens in Top 10 Best Value City Breaks
Every year, Post Office Travel Money compares the costs of short breaks in cities across Europe for UK holidaymakers
Athens Int’l Airport: Americans Lead Total Passenger Traffic in Q1
According to the data processed by AIA, the top 10 in foreign arrivals are dominated by Americans, followed by the British and Germans. Other top nationalities include Cypriots, Italians, French, Dutch, Israelis, Poles, and Turks.