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KBW: MPB at €12.7

26/11/2007 11:29
In their report dated November 23, Keffe, Bruyette & Woods (KBW) reiterated their Outperform rating and increased their target price of Marfin Popular Bank to €12.7 from €12.0.

KBW referred to an “impressive growth profile, liquid and strongly capitalized bank”, stressing that MPB “is one of fastest growing banks in Europe, with an estimated diluted EPS CAGR of 29% in 2007-9 above 20% for Greece and 11% for EU banks”.

According to KBW, “the strong outlook is driven partly by the immature and expanding branch network in Greece, the growing potential of Cyprus as international business hub, the new international initiatives in emerging Europe and revenue synergies from MIG”.

KBW increased their estimates for the MPB standalone business by 25% based on an accelerated business expansion, but they are lowering teir initial expectations for cross-selling from MIG as they assume a lower size of the portfolio on lower leverage and also lower cross-selling ratio.

Its net profits are expected to reach €610 million in 2007, €707 million in 2008 and €899 million in 2009. The EPS is estimated at €0.64 in 2007, €0.85 in 2008 and €1.06 in 2009.