Alpha Finance-AXIA raises Bank of Cyprus price target to €12.30

Nicosia, Cyprus. Alpha Finance-AXIA has raised its price target for Bank of Cyprus (BoC) to €12.30 from €11.60, citing strong profitability, a solid capital position and shareholder returns. It maintained its Buy recommendation on the lender.

Dividend outlook

According to Newmoney, Alpha Finance-AXIA expects BoC to deliver a dividend yield of 9.5 per cent in 2026, rising to 10.8 per cent in 2027 and 11.2 per cent in 2028. The projected yields are among the highest in the European banking sector.

Based on September 24 share prices, the brokerage estimated a potential total return of 25.7 per cent for BoC, including dividends.

Greek bank targets raised

Alpha Finance-AXIA also raised its price targets for Eurobank to €5.70 from €5.30, National Bank of Greece to €19 from €17.50 and Piraeus Bank to €11.60 from €10.60. It retained Buy recommendations on all three banks. The brokerage is restricted on Alpha Bank and publishes neither a recommendation nor a target price for it.

Based on September 24 prices, estimated potential total returns, including dividends, were 27.9 per cent for Eurobank, 21.6 per cent for National Bank of Greece and 19.7 per cent for Piraeus Bank.

Stronger earnings forecasts

The revisions primarily reflect stronger earnings expectations. Alpha Finance-AXIA forecasts sector-wide return on tangible equity above 16 per cent over 2026-2028. It raised its revenue forecasts for the three-year period by about 4.1 per cent, pre-provision profit estimates by 5.5 per cent and net profit forecasts by around 5 per cent.

The brokerage factored in interest rates remaining higher for longer, stronger-than-expected fee income and revised guidance issued by bank management teams following second-quarter results.