KBC: shares down after broker comments
(CercleFinance.com) - KBC shares are down over 2% on Tuesday following negative broker comments on the stock.
This morning UBS downgraded the Belgian financial group's share to "sell" from "neutral," while inching up its target price to 52 euros from 51 euros.
In a note to clients, the broker said the current share price suggests "overly optimistic assumptions."
"On a relative basis, KBC shares did well in 2020 with a 13% decline vs. the European bank sector at -26%", it wrote in the report.
"However, the decline in consensus EPS forecast was only marginally better than the sector at -28% (2021E) vs. -32%, suggesting a relative rerating," UBS added.
"This has left KBC shares trading at 12.6x 2022E EPS or around 1.5 P/E points above the long-term average," the broker pointed out.
KBC shares are down 2.5% in late morning trading, the biggest faller on Brussels's BEL 20 index.
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