Bank of America just raised its EUR/USD forecast
On Wednesday, CFRA analyst Firdaus Ibrahim changed the stock rating for Bank of Ireland (BIRG:ID) (OTC:BKRIY) from Sell to Hold and increased the price target to EUR11.00, up from the previous EUR9.00. The new target price is based on a price-to-book (P/B) ratio of 0.88 times the 2025 consensus book value per share of EUR12.51. This valuation reflects a discount compared to the average P/B ratio of 1.0x among its peers, which Ibrahim finds reasonable due to Bank of Ireland’s smaller size and limited geographical diversification.
The upgrade to Hold comes after considering the bank’s first-quarter results for 2025. While acknowledging the negative impact of lower interest rates on the net interest income of Bank of Ireland, the analyst anticipates that the bank’s strong business income, also known as non-interest income, will help mitigate these effects in future quarters. The analyst’s expectation is that the bank will continue to capitalize on its leading position in a supportive and consolidated domestic market.
The CFRA analyst’s outlook for Bank of Ireland is optimistic, noting an improving situation for the company. Despite the challenges posed by the economic environment, the bank’s non-interest income is expected to provide a buffer against the downward pressure on net interest income. The bank’s strategic positioning and the current competitive conditions in the market are seen as favorable for its performance going forward.
The earnings per share (EPS) forecasts for Bank of Ireland remain unchanged according to CFRA’s analysis. This indicates that while the price target and stock rating have been adjusted, the firm’s expectations for the company’s profitability over the next year are consistent with previous estimates. This update from CFRA provides investors with a revised perspective on the bank’s stock, reflecting the latest financial data and market conditions.
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