DB sees Bank of Cyprus as target, sees stock at EUR 17

Deutsche Bank views Bank of Cyprus as the “ideal candidate” for a takeover by a foreign “player” considering its dominant position in Cyprus and its aggressive and successful expansion drive in Greece as well as the new expansion into Russia and Romania.

The investment bank has thus revised higher its price target on the Bank of Cyprus shares from EUR 16 previously to EUR 17 per share with a “buy” recommendation as noted in its investment report dated May 22. A week ago, DB had upped its forecast from EUR 15.5 to EUR 16 after the better than expected first quarter results were announced.

DB sees Bank of Cyprus earnings per share improving to EUR 0.83 in 2007, EUR 1.08 in 2008 and EUR 1.33 in 2009. Net profit is forecast at EUR 463 mln in 2007, EUR 600 mln in 2008 and EUR 738 mln in 2009.