Eurobank leads as Euroxx raises Greek bank price targets

Eurobank has emerged as the preferred pick among Greece’s four systemic banks after Euroxx upgraded its estimates and price targets for the sector, citing strong second-quarter results , improved earnings forecasts and a more favourable interest-rate environment. In its latest report, whose findings were shared by Greek business outlet Newmoney , the brokerage retained an Overweight recommendation for all four banks and raised its price targets by about 20 per cent on average. Eurobank received the largest increase in implied upside , with its price target raised to €6. 30 from €5. 30, representing potential gains of 32 per cent. The target for the National Bank of Greece was increased to €22 from €19. 40 , implying 26 per cent upside. Alpha Bank’s target rose to €5. 80 from €5.

20, with potential upside of 23 per cent, while Piraeus Bank’s target increased to €13 from €11, implying a 21 per cent return . Euroxx argued that Greek banks could now justify trading at a premium to their European peers, rather than the discount currently reflected in their valuations. The brokerage said Greek lenders were benefiting from stronger credit expansion, a more supportive macroeconomic backdrop , higher returns on equity and more attractive shareholder distributions than their European counterparts. On this basis, Euroxx estimated that the Greek banking sector could warrant a premium of about 15 per cent to European banks. It placed fair value at about 13 times expected 2027 earnings , compared with current sector valuations of around 11. 3 times expected 2026 earnings, 10. 2 times 2027 earnings and 9. 2 times 2028 earnings. Returns on tangible equity across the sector were forecast to rise from 15. 6 per cent in 2026 to 16. 4 per cent in 2027 and 16. 9 per cent in 2028. Euroxx also raised…