(AOF) – Deutsche Bank raised its recommendation from Hold to Buy and increased its price target from 13.50 euros to 17 euros on Crédit Agricole as part of a sector rating. “Historically, Crédit Agricole has outperformed in an environment of low rates and regular economic growth thanks to its relatively high share of activities mobilizing little capital (asset-light),” notes the research office.
Recent cyclical market trends, imminent rate cuts and a more favorable economic outlook have also reinforced the analyst’s conviction that Crédit Agricole should achieve its 2025 objectives.
Finally, the discount compared to other European banks seems unjustified, particularly given its good levels of profitability.
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Despite the turbulence, fintechs stay the course
According to BCG, in mid-2021, all listed fintechs in the world were valued on average twenty times their revenues, or a valuation of around $1.3 trillion. This figure had multiplied by more than four in three years. At the end of 2022, this multiple was divided by five, with average valuations limited to four times revenue. Nevertheless, BCG considers that the sector should record a jump in growth by 2030, with a six-fold increase in revenues for fintechs. After payments, development should mainly come from fintech banking, with the rise of turnkey services for businesses and professionals (“banking-as-a-service”).