(Reuters) – Societe Generale continued its decline on the stock market on Tuesday, after falling 12% the day before following the highly anticipated presentation of the strategic plan of the bank’s new general director, Slawomir Krupa, which disappointed analysts and investors.

Societe Generale shares lost 0.81% to 23.09 euros at 08:12 GMT, the bottom of the CAC 40 which advanced at the same time by 0.36%.

The financial objectives for 2026 – which notably provide for annual revenue growth of between 0% and 2% on average – were considered disappointing by analysts.

On Tuesday, HSBC lowered its recommendation from “buy” to “hold” on Societe Generale stock, citing limited appetite for a major overhaul of the bank and therefore limited near-term catalysts.

“In the near term, we expect the 0% to 2% revenue growth forecast to weigh on consensus earnings estimates,” HSBC analysts said in a note.

They add that this new target suggests limited revenue momentum, particularly on an inflation-adjusted basis.

RBC emphasizes for its part that Société Générale provides “little ammunition” for a potential upward revision of the recommendation.

“Until there is evidence to say that Société Générale’s targets are too conservative, we see no reason to be more optimistic,” writes RBC, which reduced its price target by 8 .6% at 32 euros.

Citi, for its part, believes that “the market reaction is due to disappointment with capital returns and profitability in certain areas” as well as the positioning of certain market operators.

“Short-term investors are exiting their positions while long-term investors will wait for more evidence that the plan is in place to return value.”

(Written by Diana Mandia, Corentin Chappron, edited by Blandine Hénault)

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