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Investing.com - Goldman Sachs initiated coverage on Banco Comercial Portugue (BCP:LI) with a Neutral rating and a price target of EUR0.80.
The investment bank expects strong growth in lending volumes to drive higher profitability and capital distributions for the Portuguese bank.
Goldman Sachs estimates a combination of net interest income (NII) and non-NII growth across BCP’s core geographic markets will support the bank’s financial performance.
The firm also anticipates a reduction in legal risk provisions related to the CHF mortgage portfolio in Poland, which should help drive profitability above the peer average.
Despite projecting return on tangible equity (ROTE) of approximately 16% on average over 2025-27, Goldman Sachs believes these positive factors are already reflected in the bank’s current valuation and consensus expectations.
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