Société Générale: Jefferies upgrades stock

(CercleFinance.com) - On Monday Jefferies upgraded its rating on Société Générale shares from "hold" to "buy", having increased its target price for them by 40% (from 25 euros to 35 euros), which gives them upside potential of around 40%.


In a report, the US broker highlights "lower risks" associated with the French banking institution, which it believes are synonymous with high upside potential.

These risks, which concern the French elections, the bank's exposure to Russia and potential disappointment on capital position and costs have waned significantly or even disappeared in recent weeks, it said.

In its comments, Jefferies said it expects SocGen to achieve a return on tangible equity (ROTE) of over 9% by 2024 which, combined with a PTBV (price to tangible book value) ratio of 0.4x, promises "significant" upside potential, it says.



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