(CercleFinance.com) – Jefferies on Monday raised its recommendation on Societe Generale to ‘hold’ to ‘buy’ with a price target raised from 25 to 35 euros, showing an upside potential of around 40%.
In a research note, the American broker highlights ‘lower risks’ associated with the French banking establishment, synonymous according to him with a high upside potential.
“Three key risks (the French elections, exposure to Russia and possible disappointment in the capital situation and costs) have disappeared or have significantly receded over the past few weeks,” the broker said.
In its study, Jefferies says it expects SocGen to achieve a return on tangible equity (ROTE) of more than 9% by 2024 which, combined with a PTBV (price to tangible book value) ratio of 0 .4x, promises “significant” upside potential, he says.
The intermediary also believes that the second quarter results, which will be published on August 3, will be a favorable catalyst for the title.
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