BCP bank worth €16Bn making it one of Portugal’s most valuable entities

Portuguese High-Street bank Millennium BCP is now worth an estimated €16Bn according to three major investment houses, making it one of Portugal’s most valuable commercial entities.

And the investment houses remain optimistic about the shares of the only financial institution listed on Lisbon’s Euronext  stock market on the day the bank reached its highest-ever valuation.

With just over three weeks remaining until the presentation of first-half results, Jefferies, UBS, and Oddo BHF have raised their price targets for BCP shares.

According to research notes seen by the business daily Negócios, the three investment firms believe that the current rally could continue, despite the recent gains that briefly pushed the bank’s valuation above €16Bn.

Despite recent gains, they believe that the bank’s results and advantages over its peers justify the projected potential.

And UBS maintained its “Buy” rating for BCP and raised the stock’s price target from €1.03 to €1.18, signalling confidence in the operational execution of the bank led by Miguel Maya.

The investment firm also projects a net profit of €255 million for the second quarter and sees room for BCP to continue delivering profitability above the European sector average.

In an analysis released ahead of the second-quarter earnings report, UBS stated it expects solid operational trends to persist, supported by favourable business performance in Portugal and profitability metrics that outperform European peers. The investment bank believes Millennium BCP is maintaining an earnings growth trajectory that justifies the valuation implied by the new target price.

Sources: Negócios and Jornal Económico