Athens, Greece. Greek and Cypriot bank shares are expected to continue outperforming, with Axia-Alpha Finance raising its target prices and maintaining buy recommendations. The investment firm identified Eurobank and the Bank of Cyprus as its preferred investment choices.
Positive outlook maintained
In its latest report, whose findings were shared by Greek business outlet Insider, Axia-Alpha Finance said the positive investment case for Greek and Cypriot banks remains intact. It said the sector continues to be supported by improving fundamentals, resilient profitability and favourable macroeconomic conditions.
Shares outperform broader index
According to the analysis, bank shares have gained 24.7 per cent since the beginning of the year, outperforming the Euro Stoxx Banks Index, which has risen by 12.9 per cent over the same period. Axia attributed this performance to high and sustainable profitability, strong capital ratios, ample liquidity and increasing shareholder distributions.
Preferred investment choices
The firm identified Eurobank as its top pick, citing the group’s geographical diversification and broad international footprint. It also singled out the Bank of Cyprus as one of its preferred investments because of its combination of strong profitability and generous shareholder distributions.
Higher target prices
Axia increased its target price for Eurobank to €5.30 from €4.50. It also raised its target price for the Bank of Cyprus to €11.60 from €10.90.
The firm lifted its target price for the National Bank of Greece to €17.50 from €14.50, describing it as particularly attractive for investors seeking dividend income. The target price for Piraeus Bank was also increased to €10.60 from €8.50, with Axia saying the lender offers greater exposure to the growth prospects of the Greek economy.