Société Générale: Bank of America upgrades stock
(CercleFinance.com) - In a report published on Friday, BofA upgraded its rating on the French bank's stock from "neutral" to "buy", having increased its target price for it from 28 euros to 35 euros.
Analysts, which have raised their forecasts for the group for 2023-2025, highlight a stockmarket valuation that is under pressure, with it trading at a P/E of 5x, which more than incorporates the current restructuring scenario.
The broker says that its buy rating is based on (1) the prospect of an improved risk profile and return on tangible equity (ROTE), (2) an attractive return on capital in excess of 10% p.a., and
(3) potential significant M&A deals.
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