Nicosia, Cyprus. Roemer Capital said Bank of Cyprus and Eurobank are well positioned to benefit from a renewed re-rating of Hellenic banking stocks, upgrading Bank of Cyprus to buy and reaffirming its positive stance on Eurobank. The Cyprus-based investment firm said regional banks should benefit from fading geopolitical risks, resilient economic growth in Greece and Cyprus, declining funding costs and Greece’s forthcoming transition to developed-market status.
Valuation changes and sector outlook
Roemer Capital said it had reduced its cost of equity assumptions, aligned its forecasts with first quarter 2026 results and extended its valuation horizon to the end of 2027. It said these changes resulted in significantly higher target prices across the sector.
The firm said investors should remain constructive given what it described as a highly favourable risk and reward profile.
Bank of Cyprus upgrade
Bank of Cyprus received the most significant upgrade, with Roemer Capital raising its recommendation from hold to buy. The firm described it as the strongest capital-return story among the banks under coverage.
Roemer Capital assigned Bank of Cyprus a target price of €11.10, implying an expected total return of 27 per cent. It highlighted the bank’s projected 100 per cent dividend payout as a key attraction for investors.
According to the report, the lender continues to benefit from strong capital generation, robust profitability and an attractive shareholder returns policy.
Eurobank and other banks
Roemer Capital maintained its buy recommendation on Eurobank and assigned a target price of €4.90, forecasting a 28 per cent expected return.
The report said Eurobank remained well placed to benefit from renewed loan growth, improving operating momentum and synergies arising from mergers and acquisitions.
National Bank of Greece and Piraeus Bank also retained buy recommendations, with expected returns ranging between 25 per cent and 36 per cent. Optima Bank was upgraded to buy because of what the firm described as exceptional growth and profitability.