Deutsche Bank describes Eurobank as a top choice from the domestic banking market, confirming its buy recommendation. In fact, it raises the target price to €2.95, from €2.85 previously.

The analysts point out that the bank published strong nine-month results, shows an attractive valuation, and is growing. As an example, they cite the deal with Hellenic Bank, which will add to Eurobank's mid-term figures and the share price. "It has not yet been valued by the market," the report says. 

Deutsche Bank points out that the figures announced exceeded market estimates, while credit expansion was seen in corporate loans, which overall increased the amount of loans granted. Besides, analysts stress, Eurobank is expected to continue at the same pace of loan growth. 

THE ASSOCIATION

Indeed, Deutsche Bank stresses that the market consensus has not accounted for the consolidation with Hellenic Bank and the credit expansion. Analysts stress that the bank is well positioned to offset the decline in revenues from the ECB's monetary policy change, i.e., in an environment of interest rate cuts.

FIGUES

The bank expects RoTE to remain close to 16% over the next few years, demonstrating sustainable profitability. "Accelerating amortisation of DTCs allows for a more optimistic dividend forecast, while the non-demanding valuation, with P/E of 5x and P/TBV below 0.8x, is seen as an attractive entry point for investors. Eurobank is Deutsche Bank's favourite Greek bank, as it is described as an attractive low-risk, high-yield investment opportunity," the analysts said.