Deutsche Bank places EUR 11 target on Marfin Popular

Deutsche Bank has placed a EUR 11 per share price target for Marfin Popular Bank, expecting that the merger of Laiki, Marfin FG and Egnatia will lead to synergies and better growth opportunities.

With the ratio of loans to deposits at 79%, DB expects the new entity to have a better pricing policy, which will attract new clients. Marfin Popular Bank is expected to expand its branch network to 250 in Greece compared to 150 now. DB expects that in the event that the shareholders of MPB do not accept the takeover offer made by Piraeus, then the roles will change and MPB will submit a takeover bid seeking control of Piraeus.

Referring to the prospect of a three way merger between MPB, Piraeus and Bank of Cyprus, the investment house notes that while on the one hand, earnings per share of the combined group would increase by 36%, but on the other hand, this will lead to higher risk.