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Investing.com - Kepler Cheuvreux upgraded Societe Generale SA (EPA:GLE) stock rating from Hold to Buy while raising its price target to EUR61.90 from EUR56.00, citing multiple catalysts that could drive the French bank’s shares higher.
The research firm noted that Societe Generale stock offers 13% upside potential, which is double the average upside of other banks in its coverage universe. Since Kepler’s previous downgrade on April 2, the stock has gained 32%, outperforming the STOXX Europe 600 Banks index (SX7P) by 12%.
Kepler Cheuvreux identified three key factors supporting its upgrade decision. First, the firm’s extended estimates to 2027 show a significant profitability improvement, with return on tangible book value expected to increase from 9.9% in 2026 to 10.6% in 2027, primarily driven by cost management initiatives.
The second catalyst is the "strong likelihood" of a share buyback announcement of approximately EUR1 billion in the fourth quarter. Kepler noted this buyback was widely expected by analysts following third-quarter results but hasn’t materialized yet.
Finally, the research firm believes Societe Generale might take its Ayven business private earlier than previously anticipated, given the unit’s rapid progress in recent quarters. According to Kepler Cheuvreux, this move could add 6-8% to the bank’s profits.
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