Greek Banks Show Strong Potential for Investors with Optimistic Outlook for 2025

Recent target prices for shares of Greece’s major banks, as set by prominent international investment firms, suggest a favorable investment outlook, according to analysts. Despite impressive stock price growth throughout 2024, Greek bank shares are still trading well below the target prices predicted by these firms.

The latest assessments reveal that target prices have been generally raised, with a few exceptions where the figures have stayed the same. This optimism is largely driven by positive economic conditions that have led analysts to revise their outlook for Greek banks and several companies in other sectors upward.

Eurobank has stood out among its peers for its strong prospects, especially after its acquisition of Hellenic Bank, which has made it the largest bank in Greece by deposits and net loans. This strategic move has prompted analysts to raise their profitability forecasts for the bank significantly. Bank of America recently named Eurobank as its top investment pick for 2025 in Greece and as one of the leading choices in the Europe, Middle East, and Africa (EMEA) region. The bank’s target price was set at €3.10, a notable increase from its latest trading price of €2.34, suggesting a potential upside of around 33%.

While the target prices for Greek banks remain generally conservative, with many evaluations issued months ago, analysts anticipate upward revisions in the next review cycle. Piraeus Bank shows similar promise, with target prices that indicate an average upside of 33% compared to its most recent trading price of €4.19. The National Bank of Greece follows with an average upside potential of 24%, while Alpha Bank also demonstrates a 33% potential increase, thanks to its stable trading price.

In addition, international firms covering the Greek banking sector continue to hold “overweight” ratings for Greece’s three largest banks, recommending “buy” or “hold” positions, especially for Alpha Bank. On the other hand, coverage for Cyprus remains considerably more limited. Nonetheless, analysts predict even greater upside potential for Cypriot banks, as the Cypriot economy is expected to outperform Greece’s in the coming years.

By fLEXI tEAM