BoA advises: ‘Buy Eurobank’

Bank of America noted that Eurobank has importantly strengthened its presumption successful Cyprus.

Bank of America sees important opportunities for Greek banks from having a beingness successful countries such arsenic Cyprus and Bulgaria, which is expected to connection strong caller sources of gross successful the agelong term, conscionable arsenic the benefits of the Recovery Fund successful Greece slice successful the coming years.

This is 1 of the reasons why the American slope – while mostly affirmative astir each Greek systemic banks – places Eurobank arsenic its top choice.

As it notes, while the concern stake connected Greece remains a bully 1 and it expects strong economical figures successful the state implicit the adjacent three years, it believes that Cyprus and Bulgaria supply further opportunities successful the agelong term. The Recovery Fund financing will beryllium completed by 2026 (unless extended), but disbursements whitethorn beryllium made later, chiefly successful 2027 and partially successful 2028, arsenic estimated by BoA.

However, Cyprus and Bulgaria are expected to turn astatine a stronger gait than Greece and the eurozone successful the coming years, so Eurobank, which has a beingness successful some countries (Hellenic Bank, Postbank), will payment most. This is thanks to two factors: the apt introduction of Cyprus into the Schengen zone arsenic of 2026, and the accession of Bulgaria to the eurozone from the start of adjacent year.