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Investing.com - Deutsche Bank raised its price target on Erste Group Bank (VIE:EBS) (OTC:EBKDY) to EUR95.00 from EUR86.00 on Tuesday, while maintaining a Buy rating on the stock. The bank’s bullish stance aligns with Erste’s impressive market performance, having delivered an 84.5% return over the past year and a 61% gain year-to-date, according to InvestingPro data.
The bank anticipates that Erste’s upcoming third-quarter 2025 results, scheduled for October 31, will show further topline expansion, though this growth is expected to be largely offset by cost inflation. The company has maintained revenue growth of 4.1% over the last twelve months.
Deutsche Bank projects a marginal pre-provision profit decline compared to the same period last year, which, combined with potentially higher risk costs, could result in a 3% year-over-year bottom line decrease.
Despite these short-term challenges, Deutsche Bank continues to favor Erste’s investment case, particularly highlighting the expected boost to profitability from its Polish operations.
Erste Group Bank currently trades at 8.5 times projected 2026 earnings, according to Deutsche Bank’s analysis.
In other recent news, Erste Group Bank has seen a notable change in its stock rating. CFRA has upgraded Erste Group Bank from a "Sell" to a "Hold" rating. This upgrade is based on the bank’s improved profitability and stronger capital position. CFRA has also significantly increased the price target for Erste Group Bank to EUR89.00, up from the previous target of EUR47.00. The research firm applied a higher price-to-book multiple of 1.54x to the bank’s 2025 consensus book value per share, which is now EUR57.90. This adjustment reflects a forecasted return on equity of more than 12% for 2025, compared to the earlier estimate of around 9%. These recent developments indicate a positive shift in the bank’s financial outlook as assessed by CFRA.
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