AlphaValue cuts BCP target price by 1 cent from €0.49 to €0.48

The investment house AlphaValue/Baader has adjusted its expectations regarding the performance of BCP shares over the next 12 months.

As a result it has reduced the target price of the bank led by Miguel Maya by 1 cent from €0.49 to €0.48.

Despite the modest cut, the bank has maintained BCP’s overall recommendation at the second highest investment level at “buy”.

According to Jornal Negócios, in a note signed by David Grinsztajn, the analyst beehives that BCP faces three obstacles to its growth. The AlphaValue analyst says that “[the bank’s] management does not see its 2023 financial margin as sustainable” for the coming years, as well as a need for greater provisions to cover the devaluation of loans indexed to the Swiss franc. In addition, “business and shareholder links with Africa and China could bring governance problems”.

Grinsztajn decided to decrease the target price of the only bank listed on the main national stock market index, the PSI, from €0.49 to €0.48. The new target therefore points to an appreciation potential of 20.15% compared to the closing price of Wednesday’s session (€0.3995).

However, the analyst sees positives that can improve the performance of the listed company. Domestic operations returned to profit and the “group accumulated a surplus of capital that bodes well for future distributions” of capital. In the national field, Grinsztajn considers that “Portugal demonstrates strong fiscal consolidation and greater growth potential”.