BNP Paribas: Berenberg upgrades 'sell' rating

(CercleFinance.com) - This morning German broker Berenberg upgraded its 'sell' rating on the BNP Paribas stock, adopting a 'hold' stance.


Alongside this upgrade it has significantly raised its target price for the share from 40 euros to 52 euros, which is roughly the share's current price. In addition, note that Berenberg remains a seller of both the Société Générale and Crédit Agricole SA banking stocks.

"French banks are large, complex and growth-focused," it writes in a research note. However, is does not believe that revenue growth which is aimed for will materialise because "Cyclical pressures limit scope for short-term EPS growth." In addition, there is "a chronic underpricing of risk".

However, even in this context, Berenberg distinguishes BNP Paribas from its peers.


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