BNP Paribas: Berenberg upgrades stock

(CercleFinance.com) - Berenberg said on Wednesday it has upgraded its rating on BNP Paribas shares to "hold" (from "sell"), having increased its corresponding target price to 48 euros (from 42 euros).


"When we downgraded BNP Paribas to Sell in January 2020, we expected retail banking margins to come under greater pressure than consensus had assumed", the German broker says.

"We also argued that its weaker-than-peer capital position limited scope for distributions relative to its better-capitalised peers", saying that, "These issues remain".

"However, revenue trends in other business areas have performed better than expected and the loan loss outlook appears benign", Berenberg points out.

"This is likely to continue for the next few quarters", it predicts.

The share is currently top of the pack in Paris, up almost 3%.


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