Axia Research maintains that the Athens Stock Exchange is clearly undervalued during a period when the Greek economy is outperforming, the country is experiencing political stability, and the brand name "Greece" is attracting investors and foreign companies.

THE RISKS

Many of Greece's key trading partners in Europe may be struggling as trade and geopolitical tensions persist, but Greece has its own growth drivers that will allow the economy to maintain its good performance in the coming years, Axia analysts stress.

Specifically, they cite ongoing moves to boost the disposable income of citizens, support consumer confidence and accelerate investment, with the help of EU funds.

THE DEALS

At the same time, the private market in Greece is strong, with increasing interest in deals, especially from foreign companies and investors. The interest, as Axia notes, extends to various parts of the market and is mainly manifested in valuations that are significantly higher than those of listed companies in their respective sectors.

THE INDICATORS

Following this, the analysts stress that HA is clearly undervalued, as it shows a 2025 P/E of 8.2x. This is despite the accelerating profitability of Greek banks and corporates (estimated earnings per share growth of 13.7% year-on-year in 2024), rising dividend yields for investors (estimated dividend per share growth of 11.9% in 2024), and long-term prospects underpinned by expansion plans.

BANKS

According to Axia, the financial sector has room for further growth. With P/B at 0.68x for 2026 or P/E at 5.50x, at a time when the average dividend yield for 2026 is around 10% (including cash distributions and share buybacks), listed banks remain an attractive investment case, the analysts say.