Update shared on04 Oct 2025
Fair value Increased 2.90%Erste Group Bank's analyst price target has been increased from approximately EUR 82.63 to EUR 85.03. Analysts cite improving revenue growth expectations and a slightly lower discount rate as key drivers of this upward revision.
Analyst Commentary
Recent analyst updates have resulted in a series of upward revisions to Erste Group Bank's price targets. These updates reflect shifting perspectives on the company's growth trajectory and valuation drivers. Views are nuanced, with both bullish optimism and ongoing caution shaping consensus expectations.
Bullish Takeaways- Bullish analysts are increasing price targets, citing improved revenue growth projections and stronger execution across core markets.
- The consistent upward revisions suggest growing confidence in the bank's ability to capitalize on macroeconomic tailwinds and maintain momentum.
- Repeated Overweight ratings highlight the view that Erste Group Bank is positioned to outperform sector peers, supported by robust fundamentals.
- Some analysts note that a slightly lower discount rate is further supporting higher valuations, reflecting changing risk perceptions.
- Despite positive revisions, some analysts maintain only a neutral stance, cautioning that the valuation may already reflect much of the optimistic outlook.
- There is ongoing concern regarding the sustainability of revenue growth should economic conditions become less favorable.
- A few believe that execution risks remain, particularly in managing costs while expanding into new markets.
Valuation Changes
- Consensus Analyst Price Target has risen slightly from €82.63 to €85.03.
- Discount Rate has decreased modestly from 7.01 percent to 6.96 percent.
- Revenue Growth expectation has increased from 11.07 percent to 12.66 percent.
- Net Profit Margin projection has slipped from 26.16 percent to 25.15 percent.
- Future P/E ratio has edged up from 8.96x to 9.18x.
Disclaimer
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