Société Générale: Jefferies raises target price

(CercleFinance.com) - On Friday analysts at Jefferies raised their target price for Société Générale shares from 38 euros to 42 euros, after much better than expected quarterly results published by the French bank.


The US broker - which maintains a buy recommendation on the share - stresses that the banking group has exceeded its estimates, which were already above the consensus, which has led it to raise its own forecasts.

Despite this upbeat momentum, the SocGen share price has only appreciated by 3% since it presented its results, the broker points out, however, i.e. less than the upward revision of the consensus, which means that the share is cheaper today than before the publication.

Jefferies describes a "very inexpensive" valuation, based on a P/E of 6x, a price-to-equity ratio of 0.47x (for 2022) for a tangible return on equity (RoTE) of 8.2%.

The market seems to think otherwise today - the share is down over 3% after lunch on Friday.


Copyright (c) 2021 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.