Friday Jul 25, 2014 Search
Weather | Athens
32o C
23o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Local bank stocks regain global appeal

By Yiannis Papadoyiannis

One after another, 13 foreign credit institutions and investment firms have announced their predictions for a rise in the share prices of Greece’s systemic banks that averages out at 18 percent above the current levels, reflecting their strong expectations for the country and foreign investors’ ever-growing willingness to expose themselves to Greek risk.

The estimates on the future prices of the stocks of the country’s four main lenders point to a 18 percent rise on average in the case of Alpha Bank, National Bank and Eurobank, and 12 percent growth for Piraeus Bank shares.

Investment firm Goldman Sachs stressed in a report issued on Thursday that the recovery of the Greek banking sector is based on strong groundwork, adding that domestic lenders are very well capitalized. The US firm revised its target prices for all systemic banks, noting that they are showing significant growth potential.

Goldman Sachs singles out a number of key points on which investors must focus as they will determine the course of the sector: They are the quality of loan portfolios, the macroeconomic environment, funding conditions, net interest rate margins, political risk and the state’s bank holdings.

At the start of the week Morgan Stanley announced the resumption of Greek stock coverage after having quarantined local securities due to the fiscal crisis. In its report it stressed that valuations remain attractive as the stocks in the sector are showing growth margins from 11 up to 47 percent: Morgan Stanley analysts set their target prices for Alpha at 1 euro, National at 3.70 euros, Eurobank at 0.42 euros and Piraeus at 1.95 euros.

All major investment firms are expressing a preference for Greece among the European periphery countries while offering a vote of confidence in Greek lenders. In their reports they stress that they are now strongly capitalized and ready to return to profit, thanks to the country’s economic recovery and the concentration observed in the sector, which favors reductions in the cost of deposits and should lead to significant synergies due to economies of scale.

In their forecasts they acknowledge that the most important risk is the possible upset of political stability and the negative impact which that might have on the application of the program to restructure Greece’s economy.

They went on to pick Alpha and National as their top investment choices in the local credit sector.

ekathimerini.com , Thursday Jul 3, 2014 (23:19)  
Aegean Airlines resumes flights to Tel Aviv
Draghi safety net becoming blindfold as bonds soar
Illegal betting worth 5.5-6 billion euros
Wait is still on for many taxpayers
PPC to look into death of disabled customer
The Public Power Corporation (PPC) launched an administrative inquiry on Thursday into why electricity supplied to the home on Crete of a quadriplegic customer on life support was cut, resul...
Boutaris plans Islamic art museum for Thessaloniki
Thessaloniki Mayor Yannis Boutaris on Thursday announced plans to establish a museum of Islamic art in Greece’s northern port city. Boutaris, who was re-elected in May, told Kathimerini he h...
Inside News
TRACK & FIELD
Athens, the Marathon capital of the world for good
Paco Borao, the man who restored Athens as the Marathon capital of the world with the establishment at the Olympic Sports Center of the headquarters of the International Association of Marat...
TRACK & FIELD
Pole vault record on same day as three doping cases
Greek track and field had a mixed weekend, as on the same day as Katerina Stefanidi matched the national record in pole vault as well as the leading result in Europe so far this season, thre...
Inside Sports
COMMENTARY
Forty years of shortsighted party policies
It is 40 years since the restoration of democracy, and the two main parties which were established in 1974 and determined the country’s fate since then are unable to act their age. For decad...
EDITORIAL
Putting the past behind us
Democracy was restored in Greece 40 years ago and the country owes a debt to Constantine Karamanlis for handling the transition and anchoring the country firmly in the safe port of Europe wi...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Aegean Airlines resumes flights to Tel Aviv
2. Draghi safety net becoming blindfold as bonds soar
3. Illegal betting worth 5.5-6 billion euros
4. Wait is still on for many taxpayers
5. Hardouvelis to push for milestones target
6. IMF insists on eurozone lightening Greece’s debt
more news
Today
This Week
1. Draghi safety net becoming blindfold as bonds soar
2. Aegean Airlines resumes flights to Tel Aviv
3. Quadriplegic woman on life support 'dies due to unpaid power bills'
4. Efforts continue on Crete to find 'Sifis' the crocodile
5. Democracy 'retreated' during crisis, says Papoulias
6. Family of deceased woman on life support says application for 'special status' had been filed with PPC
Today
This Week
1. Greece seen in third bailout as bonds not enough, economists say
2. Climber dies in Mount Olympus fall
3. Greek sovereign debt at 174.1 percent of GDP in first quarter
4. Greek banks able to tap investors after stress tests, HFSF Says
5. Unequal after death
6. Death on MH17 and our global war
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.