CSFB backs triple merger, CPB target CYP 4.63

CSFB the international investment power house has thrown its full weight behind the proposed Laiki-Marfin-Egnatia merger describing it as good, which once completed will have enough liquidity (capital) to facilitate its expansion plans.

In a research note, CSFB placed a EUR 46.2 price target on the shares of Marfin with an “outperform” recommendation, expressing that the proposed merger with Laiki and Egnatia will give a new impetus to boosting profits improving further the financial ratios.

The CSFB price target implies an upside potential of 28% compared to the current EUR 36 per share prevailing price of Marfin shares trading on the ASE and is probably the best answer to a small minority in Cyprus who claim that the Marfin shares are overpriced and a bubble and that the Laiki offer to Marfin is also overpriced.

Based on the CSFB price target and the 5.75 share swap proposed to finalise the merger between Laiki and Marfin, the price target of EUR 46.2 per Marfin share gives an implied price target of CYP 4.63 for the Laiki shares, now trading at CYP 3.44 and is better than the UBS price target of CYP 4.30.