(News Bulletin 247) – AlphaValue announced on Wednesday that it had lowered its opinion on the KBC share, which it reduced to ‘reduce’ against ‘accumulate’ so far, with a price target kept unchanged at 64.3 euros.
In a research note, the consultancy explains that it has revised its forecasts for the Belgian banking group downwards by 22% for next year, against the backdrop of an anticipated decline in net interest income (NII) and application for loans.
The Parisian firm also says it expects an upward revision of the establishment’s investment expenditure with the application of the new IFRS17 accounting standards, but also a rise in inflationary pressures due to wage indexation.
Finally, AlphaValue says it takes a ‘more conservative’ approach to asset quality, a caution it believes is barely outweighed by stronger insurance revenue, again due to the application of the IFRS17 standard.
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