UBS Raised Price Targets for Greek Banks

UBS raised its terms targets for Greek banks connected Thursday, reiterating its “buy” recommendation, saying valuations stay charismatic contempt a rally of astir 70% successful banking shares since the start of the year.

The Swiss lender noted that Greek banks are still trading astatine a discount to their European peers, with price-to-earnings ratios of 7.9 times for 2026 and 6.9 times for 2027, compared with averages of 9.1 times and 8.3 times, respectively, for European banks.

UBS lifted its terms target for Alpha Bank to €4.00 from €3.70, implying a 19% upside. Eurobank’s target was raised to €4.10 from €3.64 (28% upside), National Bank of Greece to €14.90 from €13.40 (26% upside), and Piraeus Bank to €8.60 from €7.60 (25% upside).

While valuations stay appealing, UBS said the question is whether Greek banks should proceed trading astatine a discount. “Not necessarily,” the slope said, pointing to a strong macroeconomic recovery, resilient profitability, imaginable maturation from superior deployment, and Greece’s debased 10-year enslaved yield astatine 3.4% — adjacent to Spain’s 3.2% and Italy’s 3.5%.

The main constraint, UBS added, is comparatively humble earnings-per-share maturation of astir 5% annually betwixt 2024 and 2027, compared with 8% for European peers.

UBS analysts raised their terms targets for Greek lenders by 8% to 13%, citing little outgo of equity assumptions owed to reduced hazard and improved net visibility.