BCP share target up 30% after positive results

Analysts at CaixaBank/BPI have upped the target-price for BCP – Banco Comercial Português by 28.57% to 18 cents per share following good Q1 operational results from the bank led by Miguel Maya.

But despite the target-price per share being revised upwards — it had previously been 14 cents per share which was below the current quote on the stock market-, CaixaBank/BPI chose to leave the recommendation “unchanged”.
“BCP has managed to exceed expectations regarding reducing its Non-Performing Assets (NPA) and the evolution of CoR (Cost of Risk) while at the same time conveying optimism as to its ability to deal with the potential impacts resulting from the end of the moratoria” state the analysts in a communiqué.
Moreover, the analysts think that the scale and duration of the legal risks associated with loans in Swiss Francs at its Poland operations remain as a key indicator despite recent positive news.
In the first quarter, the bank set aside €112.8 million to cover the risks from its Polish operation.
Overall, BCP made €57.8 million profits in the first three months of the year. CaixaBank/BPI analysts foresee a like-for-like increase of 35% in net profit for Q1, to €48 million.
The bank’s shares currently oscillate between a fall of 3.01% and gains of 1.62%. BCP is currently trading at €16.62 cents per share, the highest they have been trading at since February 2020.