Crédit Agricole: on the rise, a broker remains to buy

( – Crédit Agricole shares advance by + 1% on Monday, driven by analyst Oddo BHF who confirms his ‘Buy’ recommendation on it, noting a ‘Q2 overall solid’.

However, the broker corrects its price target at the margin, going from 10.5 to 10.3 euros. Oddo BHF’s new target still suggests an upside potential of + 22%.

‘We are adjusting our expectations for 2020 / 2022e (-4% on average) in order to monitor in particular the evolution of the cost of risk. The share is traded at ~ 0.4x its TBV 19 (similar to the sector) but for a 2021e RoE expected at ~ 6%, i.e. nearly 1 pp higher than what is expected for the sector, with an ultimately moderate premium in view of elsewhere to the quality of the fundamentals’, comments Oddo BHF.


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