Tuesday March 31, 2015 Search
Weather | Athens
14o C
09o 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)  
Greek deposit outflows said to slow to 3 bln euros
Greece opposes EU´s sanctions on Russia, Tsipras tells Tass
Russian firms to bid for Greek oil and gas drilling tender, says energy minister
How Grexit bill could dig deep into ECB pockets
Greek bailout deal possible by end April, Tusk says
A deal on Greeces bailout is possible before the end of April, EU Council President Donald Tusk said Tuesday as Athens continued tough talks with its creditors on a disputed list of reforms....
Merkel, Hollande say time short for Greek economic plan
German Chancellor Angela Merkel and French President Francois Hollande pressed Greece’s government to come up with an economic plan that its creditors can approve, saying time is short. “The...
Inside News
SOCCER
Cyprus soccer eyes reunion after 60-year divorce
Turkish Cypriot soccer officials on Monday vowed to press ahead with attempts to reunite with the Cyprus Football Association, (CFA), triggering a political storm on the ethnically-split isl...
SOCCER
Three Greek internationals injured in Budapest car crash
Three Greek international soccer players were slightly injured on Monday in a car crash as they travelled by taxi to Budapest airport following Greece's Euro 2016 qualifying goalless draw ag...
Inside Sports
COMMENTARY
Amateur antics or overstepping the mark?
There are 149 plus two reasons why those who have been watching SYRIZA’s progress since its start cannot and never will be able to stomach the leftist party’s coalition with Independent Gree...
EDITORIAL
A pointless debate
Monday’s parliamentary debate between the country’s political leaders left a lot to be desired. There was no information whatsoever about the coalition government’s proposed reforms or the p...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Greek deposit outflows said to slow to 3 bln euros
2. Greek bailout deal possible by end April, Tusk says
3. Greece opposes EU´s sanctions on Russia, Tsipras tells Tass
4. Merkel, Hollande say time short for Greek economic plan
5. Merkel: No time to lose on Greece
6. Russian firms to bid for Greek oil and gas drilling tender, says energy minister
more news
Today
This Week
1. Amateur antics or overstepping the mark?
2. Parliamentary speaker prompts ND walkout, anger from PASOK, Potami
3. A pointless debate
4. Greek government proposes measures worth 3.7 bln
5. Greece, EU/IMF lenders end round of technical talks without deal
6. Investment guru Mark Mobius rules out Grexit, advises sell-offs
Today
This Week
1. Next Monday is D-Day for state funds
2. Eurogroup unlikely to be held soon to discuss Greek reforms
3. Moscow expects progress from Tsipras visit
4. Some more equal than others
5. Greece to present reforms by Monday, says gov't spokesman [Update]
6. Greece optimistic on deal with euro area next week
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2015, H KAΘHMEPINH All Rights Reserved.