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HSBC initiates BOCY’s coverage

27/11/2007 12:05
HSBC Pantelakis announced on Tuesday the initiation of the coverage of Bank of Cyprus with an Overweight rating and a target price of EUR15/share. According to the report, “Bank of Cyprus is the key beneficiary of the ongoing restructuring of the Cypriot banking market, while at the same time it is gaining market share in Greece”.

“BOC is a defensive play with strong liquidity and minimal dependence in wholesale funding, while it offers an attractive earnings growth profile, the highest ROE among the banks we cover and an undemanding valuation”, the report added.

“BOC is Cyprus’s largest bank with an estimated market share of 30% in deposits and 28% in total system loans”, HSBC said.

HSBC expects that the bank will achieve profits of €493 million in 2007, €563 million in 2008 and €655 million in 2009.