Société Générale: RBC raises target price
(CercleFinance.com) - On Tuesday Royal Bank of Canada raised its target price for Société Générale (SG) shares from 29 euros to 32 euros (current price about 25.
5 euros, +0.5%), considering the better-than-expected performance in corporate and investment banking.
The Canadian broker, which maintains a neutral (sector perform) rating on the stock, points to better-than-expected market activity, a momentum that it believes should continue given the recent comments made by some of its peers.
However, RBC points to a more complicated outlook for retail banking in France, where the (a priori) positive effect of rate hikes could be absorbed by the integration costs associated with the takeover of ING France, it warns.
While it acknowledges that more optimistic market forecasts could lead to a revaluation of the stock, the broker believes that visibility around SG remains too low for the time being.
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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.
5 euros, +0.5%), considering the better-than-expected performance in corporate and investment banking.
The Canadian broker, which maintains a neutral (sector perform) rating on the stock, points to better-than-expected market activity, a momentum that it believes should continue given the recent comments made by some of its peers.
However, RBC points to a more complicated outlook for retail banking in France, where the (a priori) positive effect of rate hikes could be absorbed by the integration costs associated with the takeover of ING France, it warns.
While it acknowledges that more optimistic market forecasts could lead to a revaluation of the stock, the broker believes that visibility around SG remains too low for the time being.
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.