Jefferies updated its target prices for Greek banks, estimating that the market value of the four systemic institutions will continue to increase in 2024, in continuation of the strong 2023 performance.
The rating agency sees an average upside margin of +40% from current levels, upgrading recommendations to “buy” for Alpha, Eurobank and Piraeus, and maintaining a “buy” recommendation for National Bank, which remains the “top option’, thanks to superior underlying profitability, lower red exposure ratio and high levels of capital adequacy.
More specifically, Jefferies gives the following target prices:
- Alpha Bank: 2.25 from 1.10 euros previously (+105%)
- Eurobank: 2.25 from 1.70 euros previously (+32%)
- National Bank: 8.8 from 7.40 euros previously (+19%)
- Piraeus: 4.45 from 3.10 euros previously (+44%).
Jefferies also made special mention to the imminent return of the distribution of dividends, forecasting a dividend yield of 7% for 2024-2025.
At the same time, it is estimated that Greek banks will have a “cushion” of 250-300 basis points (30% on capitalization) in relation to the capital adequacy targets of 2025, which will create opportunities for more distributions and possible repurchases.
