Nicosia, Cyprus. UBS has raised its price target for Eurobank to €5.10 from €4.90 and maintained its buy recommendation after the lender reported stronger-than-expected second-quarter results and upgraded its outlook. Cyprus continued to make a significant contribution to the group’s profitability.
Revised target and expected return
UBS said its revised price target implies upside potential of approximately 14.6 per cent.
An estimated dividend yield of 6.1 per cent brings the total prospective return to 20.7 per cent, the investment bank said.
First-half performance
The upgrade followed Eurobank’s first-half results, announced last week, when the group reported net profit of €738 million, or €776 million on an adjusted basis.
The lender also raised its full-year guidance after outperforming expectations.
Eurobank’s Cyprus operations generated adjusted net profit of €231 million during the first six months of the year. This represented a substantial share of the €361 million generated by international operations, which accounted for 46.5 per cent of overall group profitability.
Outlook and forecasts
UBS described Eurobank as an attractive regional growth story, saying its second-quarter performance exceeded market consensus forecasts.
However, it said much of management’s upgraded guidance for 2026 had already been reflected in the share price after the stock’s strong performance.
The broker made limited revisions to its forecasts and projected adjusted earnings per share of €0.43 in 2026, representing annual growth of 14 per cent and exceeding the bank’s target of growth above 10 per cent.
UBS forecast adjusted net profit of €1.57 billion in 2026, rising to €1.74 billion in 2027 and €1.83 billion in 2028.
Medium-term plan
UBS said the group’s medium-term business plan was particularly important. It forecast average annual earnings-per-share growth of 12.4 per cent between 2025 and 2028, compared with growth of about 10 per cent envisaged by management.
The investment bank said this could allow Eurobank to raise its medium-term financial targets in the future.
