You are here

HSBC: New recommendations – TPs for banks

28/09/2009 11:30
In its report for the Greek banking sector dated September 28, HSBC upgraded the recommendation for two banks and increased the TP for six Greek banks.

HSBC revised the recommendation for Bank of Cyprus to overweight from neutral and its TP from €6.3 to €4.1, as well as that of Piraeus Bank to neutral from underweight and the TP from €11.6 from €7.4.

It also revised the TP of Eurobank (€10.8 from €7.7), National Bank (€29 from €24 – overweight recommendation), Alpha Bank (€11.9 from €8.1 – neutral) and Marfin Popular Bank (€2.6 from €2 – underweight).

“Better than expected asset quality trends and profitability generation trigger sizeable earnings estimate upgrades”, the report said.

“We raise our sector EPS forecasts by 23% in 2010e and 28% in 2011e, on a combination of lower LLPs and higher NII; we raise our target prices accordingly; our earnings estimates stand 6%-7% above consensus”, the report added.