Crédit Agricole’s analyst price target was modestly raised from €18.60 to €18.71, with analysts citing a more stable profit margin outlook. This adjustment is partially offset by slightly lower revenue growth expectations.
Analyst Commentary
Recent Street research on Crédit Agricole reflects a mix of caution and optimism among major analysts regarding the bank’s near-term prospects, valuation, and earnings trajectory.
Bullish Takeaways- Bullish analysts maintain their price targets close to current levels. This suggests underlying confidence in the bank's ability to sustain its valuation despite headwinds.
- Some analysts continue to see Crédit Agricole as fairly valued. Stability in its profit margin outlook supports a less aggressive downward revision in targets.
- The maintenance of Equal Weight ratings by some major research firms indicates a belief that Crédit Agricole’s performance will be consistent with the sector.
- Multiple research notes have lowered their price targets, reflecting concerns about the bank’s muted revenue growth outlook and potential challenges in driving earnings higher.
- Bearish analysts cite a less favorable earnings growth trajectory for Crédit Agricole compared to peers. They raise questions about the bank’s ability to outperform the sector.
- The shift to Underperform or Underweight ratings by some firms highlights increased caution around execution risk and market positioning.
- Ongoing modest downward revisions in valuation targets reinforce the view that upside remains limited under current operating conditions.
What's in the News
- Keefe Bruyette analyst Tom Hallett downgraded Crédit Agricole to Underperform from Market Perform, citing a less favorable earnings growth trajectory and setting an EUR 18 price target (Periodical).
- Crédit Agricole recently hosted an Analyst/Investor Day focused on its 2028 Medium-Term Plan (Key Development).
- The company completed the repurchase of 15,128,677 shares, representing 0.5% for €208.47 million, under the buyback announced on November 7, 2024 (Key Development).
Valuation Changes
- Consensus Analyst Price Target has risen slightly, from €18.60 to €18.71.
- Discount Rate remains unchanged at 12.1%.
- Revenue Growth expectations have dipped modestly, from 4.20% to 4.10%.
- Net Profit Margin is marginally higher, increasing from 26.35% to 26.40%.
- Future P/E ratio is up slightly, moving from 9.91x to 9.98x.
Disclaimer
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