Morgan Stanley raises targets for Alpha Bank and National Bank of Greece

Athens, Greece. Morgan Stanley has raised its price targets for Alpha Bank and the National Bank of Greece following the lenders’ second-quarter results, while maintaining a positive view of Greece’s banking sector. The US investment bank continues to favour Alpha Bank, Eurobank and Piraeus Bank over the National Bank of Greece in investment appeal.

Updated price targets

According to Morgan Stanley’s latest report, shared by Greek business outlet Insider, the bank increased its price target for Alpha Bank to €5.00 from €4.90 and for the National Bank of Greece to €17.60 from €17.20.

It left its price target for Eurobank unchanged at €4.90. Morgan Stanley reiterated its overweight recommendations for Alpha Bank and Eurobank and maintained an equal-weight rating for the National Bank of Greece.

The investment bank had previously raised its price target for Piraeus Bank to €11.50 from €11.30, while retaining its overweight recommendation.

Alpha Bank outlook

Morgan Stanley said Alpha Bank has the greatest potential for positive surprises ahead of its investor day in November.

It said the lender’s management could present stronger profitability forecasts, supported by higher fee income growth, acquisition synergies and a lower cost of risk. The firm also expects further capital strengthening through additional recognition of deferred tax assets.

Morgan Stanley said Alpha Bank could provide higher shareholder distributions in the coming years without compromising its capital position. It raised its earnings-per-share forecasts from 2027 onwards and estimated that the shares still offer around 15 per cent upside, saying the market has not yet fully priced in the prospects of the bank’s new business plan.

During the second quarter, Alpha Bank recorded the strongest loan growth among Greek banks, mainly driven by corporate lending, and also reported particularly strong deposit growth, Morgan Stanley said.

Eurobank assessment

Morgan Stanley said Eurobank remains its preferred long-term investment story in the Greek banking sector. It trimmed its 2026 earnings forecast for the lender due to delays in completing the Eurolife transaction.