23/08/2007 13:40
Marfin Popular Bank is among the top picks of Deutsche Bank due to its strong funding position and its Greek growth. In a report on the European banks dated August 21, DB reiterated its PT €13 with ‘buy’ recommendation.
According to analysts, “Marfin Popular has a strong funding base, with a loan to deposit ratio of 83%. We forecast strong EPS growth (45% CAGR over 2006a-2009e). The company has indicated that the group could generate Euro 300m revenues out of MIG via cross-selling opportunities. This would add another 30% earnings revision on our 2009 estimates”.
Deutsche Bank’s top picks are Marfin Popular Group, BNP Paribas, UBS, BBVA and DnB NOR. They are all rated as Buys. According to the analysts, “we view the Greek banks as a group as defensive “growth” investments, because they are lending into the immature, fast growing and insulated Greek market, They also have exposure to faster growing markets in SEE”.
“Recent share price performance in the European banks sector has been volatile, to say the least, but in spite of sharp declines, earnings momentum has still been a key driver of relative share price performance”, the DB added.
“We think that a recessionary slowdown from denial of credit is unlikely, but in this event we see at least 30% further downside to banking sector share prices, based on the 2003 precedent”, the report consluded
According to analysts, “Marfin Popular has a strong funding base, with a loan to deposit ratio of 83%. We forecast strong EPS growth (45% CAGR over 2006a-2009e). The company has indicated that the group could generate Euro 300m revenues out of MIG via cross-selling opportunities. This would add another 30% earnings revision on our 2009 estimates”.
Deutsche Bank’s top picks are Marfin Popular Group, BNP Paribas, UBS, BBVA and DnB NOR. They are all rated as Buys. According to the analysts, “we view the Greek banks as a group as defensive “growth” investments, because they are lending into the immature, fast growing and insulated Greek market, They also have exposure to faster growing markets in SEE”.
“Recent share price performance in the European banks sector has been volatile, to say the least, but in spite of sharp declines, earnings momentum has still been a key driver of relative share price performance”, the DB added.
“We think that a recessionary slowdown from denial of credit is unlikely, but in this event we see at least 30% further downside to banking sector share prices, based on the 2003 precedent”, the report consluded
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