Monday October 20, 2014 Search
Weather | Athens
24o C
16o 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)  
Greece’s Alpha Bank said to seek 180 mln euros for Athens Hilton
Greek toy retailer Jumbo lifts Q1 sales 11 percent
Greece must stick to reforms, says Schaeuble
European leaders pivot back to debt crisis after wake-up call
PASOK objects to plans for changes to public sector wage structure
Coalition partner PASOK has reacted to leaks about the new pay structure in the civil service by saying that it has not accepted the changes. In a direct attack on Administrative Reform Mini...
SYRIZA´s Lafazanis pledges immediate action on bailout, Tsipras promises
Outspoken SYRIZA MP Panayiotis Lafazanis insists that if his party comes to power it will cancel Greece’s bailout agreement “overnight.” Lafazanis added that the policy pledges made by SYRIZ...
Inside News
BASKETBALL
Reds lose to Nea Kifissia, search for new coach
Nea Kifissia recorded the biggest win of its short history in the top flight defeating Olympiakos 68-67 on Sunday, in a Basket League weekend marred by the abandonment of the Thessaloniki de...
SOCCER
OFI stuns Panathinaikos, Mitroglou hits twice
OFI Crete produced the upset of the week in Greek soccer beating Panathinaikos in Athens for only the second time in its history on Sunday, while PAOK stayed on top beating Atromitos at home...
Inside Sports
COMMENTARY
Stop moaning and get in the game
There are so many people who love spending their days talking about the crisis and proclaiming that they know exactly what needs to be done to solve the country’s problems. Some of them obvi...
EDITORIAL
Exorcising the ghosts
Developments last week held in store an uncomfortably realistic understanding of the risks engulfing the country. The massive sell-off in Greece’s stock and bond markets was a strong shock. ...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. PASOK objects to plans for changes to public sector wage structure
2. SYRIZA´s Lafazanis pledges immediate action on bailout, Tsipras promises
3. Greece’s Alpha Bank said to seek 180 mln euros for Athens Hilton
4. Greek toy retailer Jumbo lifts Q1 sales 11 percent
5. Turkish vessel enters Cypriot Exclusive Economic Zone
6. Samaras to visit Cyprus on November 7, ahead of Egypt talks
more news
Today
This Week
1. Hardouvelis does not see 'big surprises' in ECB stress tests
2. Bakers encircle Thessaloniki's White Tower with giant 'koulouri'
3. European leaders pivot back to debt crisis after wake-up call
4. Greece must stick to reforms, says Schaeuble
5. Turkish vessel enters Cypriot Exclusive Economic Zone
6. Samaras to visit Cyprus on November 7, ahead of Egypt talks
Today
This Week
1. Possible third figure in Amphipolis mosaic may be uncovered shortly
2. Less haste, more focus
3. Greece to contribute 1 mln towards Gaza reconstruction
4. Greece nearing bailout exit, says gov't spokesperson after IMF talks
5. Istanbul skyscraper casts shadow over Greece's banking ambitions
6. Coalition shooting itself in the foot
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.