Société Générale: Bank of America upgrades stock

(CercleFinance.com) - In a report published on Friday, BofA upgraded its rating on the French bank's stock from "neutral" to "buy", having increased its target price for it from 28 euros to 35 euros.


Analysts, which have raised their forecasts for the group for 2023-2025, highlight a stockmarket valuation that is under pressure, with it trading at a P/E of 5x, which more than incorporates the current restructuring scenario.

The broker says that its buy rating is based on (1) the prospect of an improved risk profile and return on tangible equity (ROTE), (2) an attractive return on capital in excess of 10% p.a., and
(3) potential significant M&A deals.


Copyright (c) 2022 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.