BNP Paribas: share shines, with RBC comments

(CercleFinance.com) - BNP Paribas shares outperformed the CAC 40 index on Tuesday in the wake of positive comments from RBC, which included the French institution among its preferred banking stocks in Europe.


The Canadian broker said that it continues to rank BNP as one of its "top picks" within the European sector, alongside Barclays, UBS, Julius Baer, Deutsche Bank and OSB.

In its study, the broker highlights the sector's historic discount on the stockmarket, with a valuation gap of 46% compared with the rest of the European markets and 41% with US banks.

While it expects European lenders to suffer from political, economic and regulatory uncertainty in the short term, penalising their earnings in the short term, RBC believes that these factors overshadow their solid fundamentals.

As a result, the broker says it is raising its price targets on European banking stocks by an average of 12%, showing a potential upside of 22%.

In the case of BNP Paribas, on which the broker has an 'outperform' opinion, RBC even sees over 50% upside potential in the share.


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