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Investing.com - CFRA has upgraded Erste Group Bank (OTC:EBKDY) from Sell to Hold and significantly raised its price target to EUR89.00 from EUR47.00, citing improved profitability and capital position.
The research firm applied a higher price-to-book multiple of 1.54x to Erste Group’s 2025 consensus book value per share of EUR57.90, compared to its previous multiple of 0.84x. CFRA justified this increase based on the bank’s marked improvement in profitability, with 2025 return on equity now forecasted at more than 12% versus approximately 9% previously.
CFRA acknowledged that Erste Group’s execution strength and capital resilience have offset some of the macroeconomic and asset quality risks that underpinned its previous negative view of the company. The firm noted that while the economic outlook across Central and Eastern Europe remains fragile, the region’s resilience coupled with Erste Group’s improved performance suggests near-term downside may be more contained.
The research firm raised its earnings per share forecast for Erste Group to EUR7.30 from EUR7.00 for 2025 and to EUR8.50 from EUR7.30 for 2026. These upward revisions reflect growing confidence in the bank’s operational performance.
Erste Group Bank trades on the Vienna Stock Exchange under the ticker EBS:AV and is also available to U.S. investors through its over-the-counter listing as EBKDY.
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