Citigroup lifts Hellenic Bank target to EUR 7.5

Citigroup have lifted their price target on Hellenic Bank Plc (HB) shares to EUR 7.50 from EUR 7.00 previously, which together with the 3.6% dividend yield implies a 61% return compared to current prices of EUR 4.66.

In an analysis dated August 23, Citigroup analysts say they first initiated coverage on HB with a Buy rating a month ago. Since then, the news-flow has been positive. First, Bank of Cyprus reported strong 2Q07 results on 25 July. Second, HB published a positive “profit warning” on 31 July.

“We are increasing our HB EPS estimates by 9% for 2007E to EUR0.39 and by 8% for 2008E to EUR0.50. We increase our target price to EUR7.5 from EUR7.0,” said Citi.