BCP loses 10% share value as investors advised to buy
Now might be the right time to snap up shares for a song in one of Portugal’s largest private banks Millennium BCP which has seen a 10% wipeout in share value this year according to brokers.
Despite selling at just 20 cents with the bank having suffered considerable losses, analysts have high hopes that the share price could climb to 30 cents a share according to the online news service ECO.
Brokers say that outside factors are responsible for the tank in share prices and suggest investors should buy now to gain later.
In fact, they predict that shares will go up to 33 cents, in other words have a valuation gain of 65% on the current price.
In the last few weeks shares even climbed on average and the majority of analysts recommend ”buying” according to data compiled by Reuters.
“A comfort zone of 18.80 cents is extremely attractive for medium-term investors to enter the market, providing excellent opportunities to gain,” says José Bebiano Correia, account manager and broker.
The optimistic outlook is partly down to the fact that the fall in share prices have to do with external factors. BCP shares have fallen 10% this year alone, hitting rock bottom on Monday this week.
The down cycle has lasted a month, despite the fact that BCP increased its profits by 12% to €170 million from January to June 2019.