Citi raises Alpha Bank target price to €5.30 after strong second-quarter results
Citi maintained its buy recommendation for Alpha Bank while raising its target price and earnings outlook for the Greek lender.
Athens, Greece. Citi has raised its target price for Alpha Bank to €5.30 from €4.70 following the Greek lender’s strong second-quarter results, while maintaining its buy recommendation.
Based on Alpha Bank’s closing share price of €4.55 on August 7, the revised target indicates 16.5 per cent upside and a total potential return of 19.1 per cent when the expected 2.6 per cent dividend yield is included.
Revised valuation
According to Citi’s report, findings of which were shared by Greek business outlet Newmoney, the upgrade reflects an improved earnings outlook and a lower required return used in valuing the bank.
Citi increased its estimate for Alpha Bank’s underlying earnings per share by 2 per cent for 2026 and by 1 per cent for 2027, while leaving its 2028 forecast unchanged.
The investment bank also lowered its estimated cost of equity to 10.4 per cent from 11 per cent, a change that positively affects its valuation of the lender.
Earnings forecasts
Citi’s revised forecasts project continued improvement in Alpha Bank’s financial performance in the coming years.
Adjusted net profit is expected to reach €915.5 million in 2026, rise above €1 billion to €1.02 billion in 2027, and reach €1.09 billion in 2028.
Adjusted earnings per share are forecast at €0.41 in 2026, €0.47 in 2027 and €0.51 in 2028.
Revenue outlook
Continued revenue growth, particularly in net interest income and fees, is expected to support the projected improvement.
Net interest income is forecast to increase from €1.61 billion in 2025 to €1.74 billion in 2026, before approaching €2 billion by 2028.
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