One week ago, Raiffeisen reduced the BRD target price to RON16.6 and recommended “hold”, downgrading from “buy”, because of lowered profit estimations and the slower-than-expected decline of risk costs.
In a memo issued Friday for investors, the Austrian bank’s analysts explained that BRD stock is more attractive right now, after falling 3.2% over the past seven days.
The RON16.6 target price per share offered a positive potential of 14% compared to the market price a week ago, but potential calculated on the current market price reaches 17.7%.
At around 14:55 local time, BRD shares were up 0.7% on the Bucharest Stock Exchange, at RON14.2.
BRD is owned by French group Societe Generale. (EUR1=RON4.1315)