UBS ups target on HB

UBS has revised higher its price target on the share price of Hellenic Bank Pcl (HB) to CYP 2.40 from CYP 2.00 previously, implying a 70% capital appreciation opportunity compared to current levels prevailing on the CSE.

UBS also maintained its Buy 2 investment recommendation on the stock.

The Swiss investment bank, which has similarly issued bullish price targets on HB peers, BOC price target at CYP 7.20 and Laiki Bank CYP 4.00 believes that HB could become a takeover play, confirming what local analysts have long insisted.

UBS analysts noted the second quarter results, which exceeded their forecast by 10% and the 3-year Strategic Plan targets for 2006-2008, proceeding to revise higher their forecasts on the Bank.

The EPS of HB is now projected by UBS at 9 cent per share for 2006 (from 7c), at 12 cent for 2007 (from 11c), 16 cent for 2008 (from 15c).

UBS has also upped its net profit forecast for HB during 2006 by 24% to CYP 26 mln from CYP 21 mln previously. Provisions are seen at CYP 16 mln.

UBS analysts, who have full confidence in the Management team headed by Makis Keravnos in reaching and beating the 3-year Strategic Plan targets also believe that the recent Marfin-Laiki-Egnatia merger has improved the chances for HB to be involved in a possible merger situation of its own.