# HSBC ups price targets on Greek banks, with Eurobank, Piraeus top picks
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-08-22
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: HSBC Raises Price Targets on Greek Bank Shares After Strong
Meta Description: Learn why HSBC sees Eurobank and Piraeus Bank as top picks due to strong performance and undervaluation despite EU-wide recession fears. Get insights now!
URL: https://financedigest.com/hsbc-ups-price-targets-on-greek-banks-with-eurobank-piraeus-top-pickshtml

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ATHENS (Reuters) – HSBC raised its price targets on shares of Greece’s four largest lenders after they posted strong performances in the first half, saying Eurobank and Piraeus Bank were its top picks.

“Greek banks surprised us with stronger loan growth, faster repricing of securities books and robust fee income in the second quarter,” HSBC said in a research report.

Greek bank shares, down 25% in the past three months despite a strong improvement in operating performance, remain unappreciated due to European Union-wide recession fears, it said.

From a valuation point of view, we [think the most promising Q2 results](https://www.financedigest.com/will-global-commodities-suffer-as-a-result-of-brexit-the-experts-at-easymarkets-think-not.html "WILL GLOBAL COMMODITIES SUFFER AS A RESULT OF BREXIT? THE EXPERTS AT EASYMARKETS THINK NOT!") came from Piraeus,” HSBC said.

Piraeus [Bank’s strong core pre-provision income growth and good capital](https://www.financedigest.com/austrian-regulator-orders-system-relevant-banks-to-up-capital-buffers.html "Austrian regulator orders system-relevant banks to up capital buffers") generation render its price-to-tangible book value ratio of 0.24 “extremely attractive”, the lowest among its EU peers, while the bank’s balance sheet cleanup is mostly done, it said.

Earlier this month Piraeus [Bank reported](https://www.financedigest.com/how-banks-can-avoid-regulatory-reporting-mistakes-with-a-good-dose-of-automation.html "HOW BANKS CAN AVOID REGULATORY REPORTING MISTAKES WITH A GOOD DOSE OF AUTOMATION") lower net earnings in April to June compared to the first quarter on comparatively lower trading income, but raised its guidance for the full year as new loan disbursements topped targets.

HSBC raised the [price target on the shares by 38% to 2.7 euros](https://www.financedigest.com/euro-zone-inflation-eases-in-feb-but-core-prices-pick-up.html "Euro zone inflation eases in Feb but core prices pick up"), reiterating a “buy” rating. It also [raised its price target on shares](https://www.financedigest.com/cisco-forecast-raise-allays-tech-spending-fears-lifts-shares.html "Cisco forecast raise allays tech spending fears, lifts shares") of Eurobank to 1.65 euros from 1.45 previously, citing its “strong balance sheet and superior profitability.

Targets on Alpha [Bank and National Bank were raised](https://www.financedigest.com/european-central-bank-to-raise-deposit-rate-to-3-25-by-mid-year-reuters-poll.html "European Central Bank to raise deposit rate to 3.25% by mid-year: Reuters poll") to 1.45 and 4.55 respectively from 1.25 and 4.15 previously.

(Reporting by George Georgiopoulos; Editing by Jan Harvey)


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