ING: Credit Suisse raises its price target


(CercleFinance.com) – Credit Suisse reaffirms its ‘outperformance’ opinion and raises its price target to 13.5 euros on ING, in the wake of higher NII (net interest income) forecasts, the day after the investors organized by the Dutch bank.

ING admitted that NII’s guidance is cautious given how curves have moved since April, and that it may revisit its share buybacks later in 2022, in a bid to achieve a fairly even return on capital until 2025′, notes the broker.

Credit Suisse is raising its own NII expectations to reflect the new guidance, a hike partially offset by higher cost growth, leading it to modest expected EPS hikes in 2022-23.

It further highlights a valuation ‘at less than 0.7x TBV (tangible book value) for a mid-term ROTE ambition of 12%, leading mid-term capital return and incremental Russian capital risk much more limited.

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