JP Morgan ups Bank of Cyprus target

JP Morgan has revised higher its price target on Bank of Cyprus Pcl (BOCY) shares from EUR 13 to EUR 14, but notes that there are increasing risks as regards a lower than expected growth in lending, geopolitical issues concerning the region. JP Morgan analysts also note that there is a risk that the planned expansion drive into Russia and Romania may be delayed, a development that may negative affect the smooth growth of operations of the Bank of Cyprus group. The investment house also cites underlying risks in the run-up to euro adoption by Cyprus.

JP Morgan has also revised higher its price target of Piraeus to EUR 30 from EUR 28 previously, Alpha Bank from EUR 29 to EUR 32, EFG Eurobank from EUR 36 to EUR 38 and the Postal Savings Bank from EUR 20 to EUR 21.

JP Morgan maintains an “overweight” recommendation on Piraeus, Bank of Cyprus, Alpha Bank, Eurobank and “neutral” for Postal Savings Bank.

The investment house forecasts Bank of Cyprus earnings per share will increase by 143% in 2006 and then continue rising another 36% in 2007 and 27% in 2008. At the same time, the EPS of Piraeus are seen rising 40% in 2006, 38% in 2007 and 31% in 2008.