Crédit Agricole: share price on form, HSBC upgrades to buy

(CercleFinance.com) - On Friday, Crédit Agricole shares benefited from a positive note from HSBC to post the second biggest rise on the CAC 40 index, with analysts from the British bank hailing certain changes underway within the green bank's model.


At around 4:30 pm, the share gained over 2%, while the CAC was up by just 0.2% at the same time.

In a note published today, HSBC analysts indicate that they have raised their recommendation on the share to 'buy' from 'hold', with a revised target price of 17.5 euros, compared with 16 euros previously.

The British bank welcomes the changes underway within the bank, and in particular its favorable outlook for new business, a dynamic that should enable it to improve its results and encourage a stock market revaluation.

In his view, the market is not taking sufficient account of the Group's recent targeted acquisitions, even though these point to a shift towards asset management, as illustrated by the recent takeover of Belgium's Degroof Petercam.

With the fall in interest rates, HSBC also anticipates an upturn in investment product activity, to the detriment of deposits.

This phenomenon should be accentuated by the forthcoming normalization of the French political landscape and its positive effect on private individuals' appetite for risk, again likely to favor investment products.

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