Alpha Bank – Target price increase to 1.60 euros – Recommendation for “overweight” by JP Morgan

JP Morgan positively assesses Alpha Bank‘s prospects for the new year in its report in the aftermath of the bank’s nine-month financial results 2021.

In particular, according to JP Morgan analysts, their favorable estimates for Alpha Bank are based on the decisive steps taken by the bank’s management with a strategic goal of a return on equity of 10% by the end of 2023.

Specifically, the report positively assesses the strong capital profile of Alpha Bank, significantly higher than regulatory requirements, the already drastic consolidation of its balance sheet to a single-digit percentage of non-performing exposures (ACE) at the beginning of 2022, the increasing rate of credit expansion with for new disbursements of 8 billion euros by the end of 2024, measures to enhance its efficiency by further reducing costs, as well as initiatives to expand its operations in Romania.

In this context, JP Morgan raised the target price for the share of Alpha Bank.

In particular, the American ratings agency positively assesses the prospects that are opening up for the Bank for the new year, setting the target price at 1.60 euros, from 1.50 euros previously, with an upside of 53.8%, the highest among to Greek banks, while giving an “overweight” recommendation.