JPMorgan Maintains Piraeus Bank Price Target

JPMorgan retained its terms target astatine €9 for Piraeus Bank shares, estimating it remains an charismatic enactment for investors, contempt its 87% summation since the start of the year pursuing the bank’s Q3 results.

In its report, JPMorgan highlights that the Greek bank’s shares proceed to trade astatine a “cheap level,” beneath 7xP/E (price-to-earnings ratio) and 1xP/TBV (tangible publication value) based connected 2027 estimates.

The Greek systemic bank’s reported €261 cardinal net earlier tax (excluding one-offs) were supra expectations, attributed to indebtedness nonaccomplishment provisions and income from affiliates.

Net involvement income (NII) matched marketplace expectations, showing a 0.5% quarterly decline; fees were 2% lower, costs were 1% better, and indebtedness nonaccomplishment provisions (LLPs) were 6% higher than the statement estimation (slightly beneath JPM’s ain forecast). Other non-core items offset the difference, resulting successful pre-tax nett 1% beneath consensus.

The bank’s absorption besides raised its 2025 guidance for normalized RoTE from ~14% to ~15% and expects to transcend the earnings-per-share (EPS) target of €0.80, with results already adjacent to that level. JP Morgan projects astir 15% RoTE and €0.83 EPS for 2025.

The NII guidance of €1.9 cardinal for 2025 is seen arsenic “safe”, while the outlook for €1.9 cardinal successful 2026 was reaffirmed. The CET1 pro-forma ratio stood astatine 14.61%, supra some the marketplace statement (14.5%) and JP Morgan’s estimation (14.3%), rising 26 ground points quarter-on-quarter. Some equilibrium expanse items offset the antagonistic interaction from DTCs/AT1s and others (which had reduced CET1 by 30 bps successful Q2).

Piraeus Bank’s shares had underperformed different Greek slope stocks successful the past period up of the Q3 results, but the figures look mostly positive, according to JP Morgan.