— SFS dazzles with exceptional performance
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Market attention is fixed on the flow of first half earnings announcements by CSE-listed companies with the last three days of August expected to see a barrage of reports that will be closely scrutinised by market analysts.
Following the 57.5% increase in first half profits reported by Bank of Cyprus, investors will pore over the results due from Hellenic Bank and Marfin Popular Bank on August 29 and many others by the end of August.
Citigroup has forecast Hellenic Bank net profits for 2007 climbing to EUR 105.4 mln with a price target of EUR 7.50 per share. Hellenic Bank reported total profit of EUR 58.8 mln for the whole of 2006.
Sharelink Securities & Financial Services forecast total 2007 profit of EUR 105.2 mln for Hellenic Bank, but kept their price target on the bank at EUR 5.15 per share.
Deutsche Bank are forecasting that the second quarter profits of Marfin Popular Bank will climb 70% YoY to EUR 96 mln, maintaining their “buy†recommendation with a price target of EUR 13 per share.
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— JP Morgan on Bank of
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JP Morgan, meanwhile, confirmed their “overweight†recommendation on the Bank of Cyprus shares and kept their price target at EUR 18 per share in a report dated August 21.
Analysts at JP Morgan maintain that Bank of Cyprus’ earnings are being driven by market share gains in
The EPS estimates for 2007 and 2008 have been raised from EUR 0.83 to EUR 0.86 and from EUR 1.01 to EUR 1.05, respectively, reflecting lower provisions and stronger loan growth.
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— Upside surprises
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Financial as well as a number of holding company stocks with large scale investment portfolios are expected to continue to benefit from the highly satisfactory increase in equity prices during the first half of 2007.
SFS Group confirmed market expectations for an exceptional performance in the first half of 2007, by reporting net profit of EUR 15.9 mln compared to EUR 3.2 mln in the same period a year ago.
SFS benefited from improved business in all three main sectors of activity of shipping, commercial and property and financial services as well as from sale of its stake in Athena Investments, increased profits from associate companies and following its successful takeover of White Knight Holdings.
Construction and property development stocks are also likely to deliver above-average performance on the back of sharp increase in property prices and massive activity in the property sector.
The Elma Group with an exposure to investments and property which earlier this year sold its significant stake in Aristo Developers is seen reporting exceptional gains when it announces its results today with a good possibility of declaring an interim dividend.
