Time to be selective on Greek banks as lower interest rates loom, MS says
** Morgan Stanley says that while Greek banks are attractive as they are undervalued and benefit from a strong Greek economy, future returns may be lower due to a potential economic slowdown in Europe and lower interest rates
** It downgrades National Bank of Greece (NBG) NBGr.AT and Piraeus Bank BOPr.AT to "equal-weight" from "overweight" seeing interest rate cuts by the European Central Bank affecting their net interest income (NII)
** The broker says NBG will be the most affected by the lower interest rates as the bank has "the highest NII sensitivity to rate cuts"
** It adds that Alpha Bank ACBr.AT is its preferred lender in Greece as it is the less affected by interest rate cuts and is currently undervalued compared to its peers; keeps its "overweight" rating
** MS also reiterates its "overweight" rating on Eurobank EURBr.AT, saying the lender will benefit from its merger with Hellenic Bank HBNK.CY and notes its strong balance sheet
Reporting by Antonis Pothitos
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
