(CercleFinance.com) – Bank of America maintained its buy recommendation on BNP Paribas on Monday with a target price of 82 euros following the publication of information in the press evoking a possible interest of the group for the Dutch bank ABN Amro.
Although it considers ABN to be a ‘credible’ target in the event of a possible takeover by a leading pan-European group, the broker considers that such an operation seems implausible to it given the independence strategy pursued by BNP Paribas, oriented both towards the growth of its finance and investment banking (BFI) and targeted acquisitions.
In its note, BofA nevertheless recognizes that ABN Amro could act as a serious candidate because of its low-risk profile, its progress in terms of cost reductions, the quality of its information systems and its attractive levels of capital.
A transaction would allow this to generate cost synergies in corporate banking and create a major private bank in Northern Europe, but also to free up some four billion euros of capital which could be used by BNP. Paribas to grow faster than its rivals or distribute funds to shareholders, concludes the broker.
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