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UBS and Morgan Stanley have downgraded Banco Comercial Português (BCP) due to valuation concerns and limited upside after a significant stock rally. UBS shifted its rating from "buy" to "neutral," while Morgan Stanley moved from "overweight" to "equal-weight," citing reduced visibility on capital returns and a lack of clear growth catalysts. Despite BCP's strong fundamentals, analysts foresee a period of consolidation with minimal room for further gains.
UBS has downgraded Banco Comercial Portugues from Buy to Neutral, setting a price target of EUR0.56. This decision follows a remarkable 300% stock increase since 2021, despite strong fundamentals like a projected return on tangible equity of 14-15% for 2023-2024 and a solid balance sheet. However, UBS notes that the current valuation does not present a compelling buy opportunity, with a price-to-earnings ratio of 9.5 times for 2026 estimates, higher than the sector average of 8 times, and a lack of near-term catalysts for positive earnings revisions.
UBS has downgraded Banco Comercial Portugues from Buy to Neutral, setting a target price of €0.56. This decision follows a 300% rise in the bank's share price since 2021, outpacing the sector average. Despite strong fundamentals, including a 14-15% expected return on tangible equity and a solid balance sheet, UBS sees no compelling buy opportunity at current valuations, especially as earnings per share consensus has slightly declined.
UBS has downgraded Banco Comercial Portugues from Buy to Neutral, setting a target price of €0.56. This decision follows a remarkable 300% rise in the bank's shares since late 2021, despite strong fundamentals, including a projected return on tangible equity of 14-15% for 2023-2024 and a solid balance sheet. However, UBS notes that the current valuation does not present a compelling buying opportunity, as the bank's earnings per share consensus has slightly declined, contrasting with peers' growth.
Morgan Stanley and UBS have downgraded their outlook on Banco Comercial Portugues (BCP) due to valuation concerns, following a significant rise in the stock's price. MS shifted from "overweight" to "equal weight," citing limited potential for capital distribution increases, while UBS moved from "buy" to "neutral," highlighting a lack of near-term catalysts. MS raised its price target to €0.58, while UBS maintained its target at €0.56.
Banco Comercial Portugues SA
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analysts downgrade banco comercial portugues amid concerns over limited growth potential
13:22 03.03.2025
ubs downgrades banco comercial stock rating to neutral with target at 0.56 euro
11:14 03.03.2025
ubs downgrades banco comercial to neutral with target price of 0.56 euro
11:06 03.03.2025
ubs downgrades banco comercial to neutral with target price of 0.56 euro
11:06 03.03.2025
brokers downgrade bcp as valuation limits upside potential
11:03 03.03.2025
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