JPMorgan retained its price target at €9 for Piraeus Bank shares,
JPMorgan retained its price target at €9 for Piraeus Bank shares, estimating it remains an attractive option for investors, despite its 87% increase since the start of the year following the bank’s Q3 results.
In its report, JPMorgan highlights that the Greek bank’s shares continue to trade at a “cheap level,” below 7xP/E (price-to-earnings ratio) and 1xP/TBV (tangible book value) based on 2027 estimates.
The Greek systemic bank’s reported €261 million earnings before tax (excluding one-offs) were above expectations, attributed to loan loss provisions and income from affiliates.
Net interest income (NII) matched market expectations, showing a 0.5% quarterly decline; fees were 2% lower, costs were 1% better, and loan loss provisions (LLPs) were 6% higher than the consensus estimate (slightly below JPM’s own forecast). Other non-core items offset the difference, resulting in pre-tax profit 1% below consensus.
The bank’s management also raised its 2025 guidance for normalized RoTE from ~14% to ~15% and expects to exceed the earnings-per-share (EPS) target of €0.80, with results already close to that level. JP Morgan projects around 15% RoTE and €0.83 EPS for 2025.
The NII guidance of €1.9 billion for 2025 is seen as “safe”, while the outlook for €1.9 billion
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