BNP Paribas: UBS upgrades to 'buy'

(CercleFinance.com) - UBS has upgraded its “neutral” rating on the BNP Paribas share to “buy,” deeming that the group's strengths are underestimated by the market.
Alongside this upgrade, it has upped its 12-month target price for the share from 68 euros to 69 euros, meaning upside potential of around 10%.

According to its research report, the risk/return profile of the French bank's share has improved. Admittedly, the weakening of statistics in the euro zone has recently weighed on the stock, although it seems to be a punctual trend: "our economists do not believe that this data signals the start of a lasting slowdown," the broker argues in a report, saying that it expects the ECB to make two rate hikes in 2019.

According to UBS, another argument that is specific to BNP Paribas is that: "management is committed to a steadily growing dividend profile, prompting us to increase our 2018 DPS estimate," on potential capital gains made on disposals, to 3.07 euros, after 3.02 euros for 2017.


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