Deutsche Bank sees BOC at CYP 5.40

Deutsche Bank has upped its price target on Bank of Cyprus shares from CYP 4.31 to CYP 5.40 or EUR 9.5 per share on the basis of its forecast that first quarter earnings due on May 11 will jump to CYP 29 mln.

DB sees BOC lifting income by 19%, interest income up 21% and commission income up 17%. Total costs are seen 5% higher.

BOC shares closed Thursday at CYP 4.50 on the CSE and EUR 7.92 or CYP 4.56 on ATHEX.

Referring to the Greek banking shares, DB says it views the current premium of 11% as low when compared to European multiples, based on which it has reiterated its buy on Alpha Bank, Ethniki and Eurobank.

After increasing its price target on BOC, the investment bank now sees Alpha Bank as a good takeover target.

DB analysts lifted their price target on Alpha to EUR 37.5 from EUR 36.5 previously, on Eurobank to EUR 37.5 from EUR 36 previously and on Ethniki to EUR 52 from EUR 50.5 previously.