KBC Group: Jefferies upgrades stock - Czech this out

(CercleFinance.com) - Jefferies has upgraded its recommendation on the share of KBC Group, now recommending investors "buy" it (vs.
"hold" previously), having hiked their corresponding target price from 66.2 euros to 70 euros, which suggests upside potential of 22% for the Belgian banking group.

"Our recent visit to Prague emboldens conviction in the ability of the Czech division to support group NII growth and we believe that this, along with an inflection in Belgian front book spreads, is not fully appreciated by investors," the broker says in its report.

Jefferies has raised its pre-tax earnings estimates for KBC by 5.1% for 2019 and 3.7% for 2020, explaining that reductions in revenues are offset by better cost efficiency and lower risk provisions.


Copyright (c) 2019 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.