Bank of America: “Separate” Eurobank and Piraeus Bank by recommending “market” their shares

The purchase of their shares and Piraeus Bank (BofA), at the same time as maintaining a reserve position for the National Bank and Alpha Bank with an underperform recommendation. Bank of America, however, explains that its stance on the four Greek systemic banks is in balance, “separating” Eurobank as more profitable and Piraeus Bank as cheaper. ‘At 2025 level, Greek banks negotiate 5.3 to 6.9 times the P/E index, sufficiently aligned up to and above European banks, despite having higher risks in capital quality terms, structurally higher CoR and lower dividend returns, which are also outstanding for approval by the regulatory authority. For the EIB and Alpha, we believe that its consensual assessments and their valuations reflect the recovery stories above and recommendations are underperform”, stresses BofA. BofA believes that the fall in profitability will also be the key point for the purchase of the following years. Finally, with regard to the National Bank and Alpha Bank, BofA emphasises that estimates and valuation are greater than the impact of recovery expectations.