Bank of Cyprus shares fell sharply by more than 8% on Thursday after foreign analysts reduced their price targets on the shares after the disappointing profit growth forecast made by the Bank with respect to its 2008 profit target. During the presentation of the 3-year Strategic Growth Plan, Bank of Cyprus management promised a moderate and ultra-conservative profit growth of 11% to EUR 540 mln from EUR 485 mln profit reported for 2007.
Bank of Cyprus shares were marked 12% lower to EUR 8.26 per share on Thursday after Deutsche Bank and KBW reduced their price target on the BOC shares from EUR 17 to EUR 12 per share, while Citigroup and JP Morgan left their price targets unchanged at EUR 17 and EUR 18 respectively, but said the business plan was very conservative.
Analysts shrugged off Management forecast that profit growth in 2009 and 2010 would be 25% annually.
DB is now forecasting Bank of Cyprus shares at EUR 12 from EUR 17 previously, with EPS for 2008 seen at EUR 0.96 and for 2009 at EUR 1.21, which is 10% lower than its previous forecast. DB sees Bank of Cyprus net profit for 2008 at EUR 544 mln from its earlier forecast of EUR 600 mln while for 2009, DB sees net profits climbing to EUR 687 mln and in 2010 to EUR 866 mln.
KBW is now forecasting Bank of Cyprus shares at EUR 12 from EUR 16 previously with EPS for 2008 seen at EUR 0.97 and for 2009 at EIR 1.16. The net profit forecast for 2008 is EUR 548 mln and EUR 658 mln for 2009.
Citigroup is maintaining its price target at EUR 17 per share, but is reducing its EPS target for 2008 to EUR 1.05 from EUR 1.09 previously. Citi sees Bank of Cyprus profit at EUR 588.9 mln in 2008 and EUR 717 mln in 2009.
Cheuvreux Credit Agricole has lowered its target price on Bank of Cyprus shares to EUR 14 from EUR 16 previously, describing 2007 profit 2% below its estimates with EPS for 2008 now seen at EUR 0.98, at EUR 1.19 for 2009 and EUR 1.52 for 2010.
The CSE index fell 9.81% to 3351.32 points on total volume of EUR 23.08 mln, with Hellenic Bank declining 7.7% to EUR 3.56 and Marfin Popular Bank down 8% at EUR 6.38.
