JP Morgan "praises" Greek banks: Sees rally up to 30%, prefers Eurobank and Piraeus Bank
JP Morgan sees Greek banks entering a growth phase, forecasting 12% EPS CAGR for 2025-2028. It prefers Eurobank and Piraeus Bank, estimating 30% and 28% upside, respectively. Greek banks trade at a 10% discount to peers despite higher earnings growth. JP Morgan raised earnings estimates for 2026-2028, citing higher net interest income and fee revenues.
How this was made
The 30-second read
Why it matters
The upgrades provide fresh guidance and higher target prices, likely prompting revaluation by investors.
Market read
Analyst upgrades may drive price appreciation across Greek banking sector and influence European bank indices.
What to watch
Potential political instability in Greece and slower Euribor decline may affect earnings.
Background
JP Morgan released an upgraded outlook for all four major Greek banks, citing stronger macro environment and higher earnings growth.
Market effects
Broadly bullish outlook may lift European regional bank sector valuations.
Greek banks' inclusion in Euro STOXX indices could attract more EU investors.
Higher exposure of emerging-market Greek banks to developed-market indices may affect global banking sentiment.
Counterpoint
Risk of margin compression and credit slowdown could limit upside.
Key entities
- companyEurobank
Greek bank upgraded to Overweight with 30% upside target.
- companyPiraeus Bank
Greek bank upgraded to Overweight with 28% upside target.
- companyAlpha Bank
Greek bank with raised earnings estimates.
- companyNational Bank of Greece
Greek bank with raised earnings estimates.
