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Citi Cuts Target Prices For Six Greek Banks
Citibank cuts its target prices for sic Greek banks, downgrading rating fro Alpha Bank while reiterating its ratings for the other five, a report dated 26th January said.
More specificall, thye firm downgrades Alpha to ‘hold’ from ‘buy’ and cuts TP to 7.75 euro (from 10 euro). For NBG and Bank of Cyprus, it reiterates ‘buy’ and cuts TP to 22 and 6 euro from 25 and 7 euro respectively. Marfin also keeps its ‘buy’ rating and its TP is cut to 3.3 euro from a previous 4.25 euro.
Citi also reiterates its rating on Eurobank and Piraeus Bank (‘hold’) and cuts TP to 8 and 7 euro from a previous 9 and 10 euro respectively.
NBG and Bank of Cyprus are Citi’s core buys as due to superior funding costs and business/geographic mix, “we expect NBG and Bank of Cyprus to continue to deliver the highest ROEs of the peer group. NBG΄s ROEs are relatively protected due to the benefit of higher starting NIMs and growth in Turkey (half of 2010 group earnings) offsetting deterioration in Greece.”
Similarly, Bank of Cyprus, benefits from gearing to better performing Cypriot and Russian markets.
Citibank cuts its target prices for sic Greek banks, downgrading rating fro Alpha Bank while reiterating its ratings for the other five, a report dated 26th January said.
More specificall, thye firm downgrades Alpha to ‘hold’ from ‘buy’ and cuts TP to 7.75 euro (from 10 euro). For NBG and Bank of Cyprus, it reiterates ‘buy’ and cuts TP to 22 and 6 euro from 25 and 7 euro respectively. Marfin also keeps its ‘buy’ rating and its TP is cut to 3.3 euro from a previous 4.25 euro.
Citi also reiterates its rating on Eurobank and Piraeus Bank (‘hold’) and cuts TP to 8 and 7 euro from a previous 9 and 10 euro respectively.
NBG and Bank of Cyprus are Citi’s core buys as due to superior funding costs and business/geographic mix, “we expect NBG and Bank of Cyprus to continue to deliver the highest ROEs of the peer group. NBG΄s ROEs are relatively protected due to the benefit of higher starting NIMs and growth in Turkey (half of 2010 group earnings) offsetting deterioration in Greece.”
Similarly, Bank of Cyprus, benefits from gearing to better performing Cypriot and Russian markets.