Euroxx raises Greek bank price targets, names Eurobank preferred pick

Athens, Greece. Euroxx has retained Overweight recommendations for Greece’s four systemic banks and raised its sector price targets, citing strong second-quarter results, improved earnings forecasts and a more favourable interest-rate environment. Eurobank was identified as the brokerage’s preferred pick, with the largest implied upside.

Revised price targets

Eurobank’s price target was raised to €6.30 from €5.30, implying potential gains of 32 per cent.

The National Bank of Greece target increased to €22 from €19.40, implying 26 per cent upside. Alpha Bank’s target rose to €5.80 from €5.20, with potential upside of 23 per cent, while Piraeus Bank’s target was raised to €13 from €11, implying a 21 per cent return.

Valuation outlook

In its latest report, shared by Greek business outlet Newmoney, Euroxx said Greek banks could justify trading at a premium to European peers rather than at the discount reflected in current valuations.

The brokerage cited stronger credit expansion, a more supportive macroeconomic environment, higher returns on equity and more attractive shareholder distributions among Greek lenders.

Euroxx estimated that the sector could warrant a premium of about 15 per cent to European banks. It put fair value at around 13 times expected 2027 earnings, compared with current valuations of about 11.3 times expected 2026 earnings, 10.2 times expected 2027 earnings and 9.2 times expected 2028 earnings.

Return forecasts

Returns on tangible equity across the Greek banking sector were forecast to rise from 15.6 per cent in 2026 to 16.4 per cent in 2027 and 16.9 per cent in 2028.