DB ups price target on BOC

Deutsche Bank has revised its price target on the shares of Bank of Cyprus following the positive profit warning issued by the Bank regarding its third quarter results.

DB now expects BOC to lift its net profits for the first nine months of the year to CYP 72 mln from its previous estimate of CYP 61 mln when it issued its first investment report on the Bank.

“We increased our expectations in view of the new considerations,” DB said in its report, adding that they have also revised upward their 2006 profit forecast to CYP 87 mln from CYP 81 mln previously.

DB has also revised its price target on the BOC shares to CYP 2.83 e-rights from CYP 2.70 previously, and based on its 2005 profit forecast is raising its price target to CYP 3.06 per share.

The investment bank says BOC is trading at a 16.4 times p/e based on its 2005 profits, and 14.8 times based on forecasted 2006 profits. The dividend yield of BOC is seen at 2.9% for 2005 and 3% in 2006.

DB estimates that the profits of BOC in 2007 will reach CYP 100 mln.

Meanwhile, the US based Keefe Bruyette & Woods is reported to have commenced coverage on BOC shares with a price target of CYP 2.90 per share.