Raises target values Greek banks that NBG Securitieskeeping the stock’s outperform recommendations unchanged.
In particular, the new target values are as follows:
– Alpha Bank €2.50 from €2.00 previously and 54% upside margin
– Eurobank €2.85 from €2.10 previously and a 32% upside margin
– Piraeus Bank €5.30 from €4.50 previously and 42% upside margin
At the same time, it is noted that Piraeus Bank remains the leader.
NBG Securities highlights that despite Greek banks’ strong performance in 2023, with average growth of 68%, they still trade at a discount to European banks. They outperformed their European peers by 48% in 2023, reflecting improved profitability, stable liquidity and capital levels, and a favorable earnings outlook beyond 2022.
Greek banks are trading at an average of 0.82x 2024 P/TBV, compared to 0.99x for European banks, implying a 17% discount.
“This discount may be reduced as Greek banks’ business plans are successfully implemented, leading to improved profitability and dividend distribution,” the statement said.
In 2024, banks record an average return of 26%, while outperforming European banks.
According to NBG Securities, the higher target prices mainly reflect an improvement in assumptions given the banks’ latest business plans and a 75 basis point drop in market risk (ERP).
