Crédit Agricole: Oddo still a buyer after a 'solid' Q2
(CercleFinance.com) - On Monday morning, an Oddo BHF analyst confirms his "Buy" recommendation on the Crédit Agricole share, noting a solid Q2 as a whole.
However, the broker is shaving a fraction off its target price from 10.5 euros to 10.3 euros - even so, its new target price still suggests upside potential of +22%.
The broker says that it is adjusting its expectations for 2020/2022e (-4% on average) in order to monitor changes in risk provisions. The stock is trading at ~0.4x its TBV 19 (similar to the sector), although on an expected 2021e RoE of about 6%, i.e. nearly 1 pp higher than what is expected for the sector, with in fine, a moderate premium given the quality of its fundamentals, it adds.
Copyright (c) 2020 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.