Alpha Finance raises price targets on Greek banks

ATHENS, Nov 28 (Reuters) – Alpha Finance, a subsidiary of Alpha Financial institution (ACBr.AT), on Monday raised its worth targets on shares of Eurobank (EURBr.AT), Nationwide Financial institution (NBGr.AT) and Piraeus Financial institution (BOPr.AT), three of Greece’s largest lenders, sustaining a ‘purchase’ ranking on all of them.

The brokerage additionally raised the sector’s anticipated 2023 earnings progress by 20%, saying the banks have been set to profit from the next rate of interest setting and optimistic macroeconomic prospects at dwelling.

The Greek authorities final month forecast that financial progress would gradual however a recession could be averted, with gross home product anticipated to develop by 5.6% in 2022 and by 1.8% in 2023.

Greek financial institution shares (.FTATBNK) have outperformed their European friends with features of 15% for the reason that begin of the yr versus a 5% fall within the EuroStoxx banking index, with Alpha Finance anticipating the outperformance to proceed subsequent yr as properly.

Analysts have mentioned some Greek banking belongings had been undervalued and that many have made progress clearing unhealthy loans.

Alpha mentioned it expects the banks’ web curiosity revenue to rise by 11% subsequent yr with their mortgage portfolios unlikely to incur any important unfavourable affect from the anticipated financial slowdown in 2023.

It set a worth goal of 1.44 euros for shares of Eurobank, 5.0 euros for shares of Nationwide Financial institution and a couple of.25 euros for Piraeus Financial institution.

Reporting by George Georgiopoulos; Modifying by Conor Humphries

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