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KBW lowers profit expectations

07/07/2008 14:52
Bank of Cyprus, Marfin Popular Bank, Piraeus Bank and National Bank are among KBW’s top picks but the firm lowered their TPs. In its report dated July 7, KBW upgraded the European banking sector weighting to Neutral. “Earnings estimates should continue to be downgraded, primarily due to higher loan loss charges”, the report said.

“The weak 1H08 performance, deteriorating economic outlook and multiple dilutive capital increases have led us to cut our 2008 and 2009 sector EPS forecasts by 36% and 18%, respectively, since the beginning of 2008”, it added.

Its top picks also include HSBC, Santander, BNP Paribas, bbva, Commerzbank. Aaereal, Allied Irish, DNB Nor and UBI Banka.

The new TP for BOCY dropped to €11.4 from €12 and for Marfin to €6.8 from €7.8.