(News Bulletin 247) – Deutsche Bank on Tuesday downgraded its recommendation on Societe Generale shares, reduced from ‘buy’ to ‘hold’ with a price target reduced from 37 to 33 euros.
In a research note, the financial intermediary recommends that investors show ‘patience’ before a year 2023 promises to be a ‘transition’ exercise.
“We see more headwinds than short-term upwinds for SocGen, especially in retail banking in France, which should come under greater pressure than initially envisaged,” explains the analyst in his study.
“At the same time, revenues from capital markets activity should normalize after two and a half years of solid performance, while it is difficult to imagine an improvement in performance in auto finance after a breathtaking 2022 financial year”, adds- he.
Deutsche Bank, on the other hand, says it envisages an improvement in performance from 2024 and considers the French banking group capable of achieving its medium-term objectives.
The analyst also posting a ‘hold’ advice on Crédit Agricole, BNP Paribas is now the only French banking stock he recommends for purchase.
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