(News Bulletin 247) – Deutsche Bank announced on Friday that it had raised its recommendation on Societe Generale from ‘keep’ to ‘buy’, believing that the French banking group was ‘on the verge of a recovery’.
The research department estimates that several favorable elements are emerging for the establishment by 2024, starting with a recovery in net interest income (NII) from its retail banking division in France.
The analyst also mentions the forthcoming materialization of cost reductions resulting from the restructuring of the branch network as well as the positive effects of the merger between ALD and LeasePlan.
‘The solid quality of its assets, the correct level of its available capital and the profitability of its capital and a cheap valuation complete this investment case,’ adds DB.
In its note, Deutsche Bank says it does not anticipate any major strategic change with the entry into office of the new managing director, but underlines that certain initiatives, such as the sale of certain African subsidiaries, could be well perceived by the market.
Its unchanged target price of 34 euros shows an upside potential of 45%.
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