Intel stock spikes after report of possible US government stake
Investing.com - Barclays (LON:BARC) downgraded KBC Groep (BR:KBC) (OTC:KBCSY) from Overweight to Equalweight on Tuesday, while maintaining a price target of EUR102.00. The stock, currently trading at $52.56, sits near its 52-week high of $53.78, having delivered an impressive 42% return over the past six months.
The downgrade reflects Barclays’ assessment that KBC has trapped excess capital and that its equity story has become partially dependent on mergers and acquisitions, particularly related to the potential acquisition of state-owned Ethias.
Barclays expressed concerns that Ethias may never reach the point of sale, and even if it did, a potential deal might not deliver the value investors anticipate.
The investment bank also highlighted risks to profitability in KBC’s Central and Eastern European (CEE) exposure, citing recent examples of taxes on banks and reserves in Hungary, Romania, and Poland.
Despite acknowledging that profitability among CEE banks remains strong at approximately 17% Return on Tangible Equity across fiscal years 2025-2027, Barclays pointed to certain EU banks outside of KBC that demonstrate improving profitability at attractive valuations, particularly in Dutch, UK, and French markets.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.