October 28 (SeeNews) - Raiffeisen Capital & Investment (RCI) on Wednesday said it upgraded to ‘Hold’ from ‘Reduce’ its recommendation on the Romanian Development Bank, BRD, a unit of French banking group Societe Generale, as the lender is expected to post favourable third-quarter financial results.
RCI said in a statement it raises its target price for BRD shares to 13.4 lei ($4.6/3.1 euro) from 11.2 lei.
”The third-quarter results could create a momentum in BRD-GSG shares. Therefore, we advise investors to take advantage of the upcoming results," RCI said in the statement.
BRD will announce on November 2 its results for the nine months through September under the Romanian Accounting Standards (RAS).
RCI expects the bank to post a further strengthening of the quarterly net interest margin (NIM), to 3.52% from 3.22% for the second quarter. "Bottom line should stand at 242 million lei, down 19% year-on-year," it added.
"We expect these results to leave a favourable impression on the market and possibly lead to upgraded full-year estimates by the analysts," RCI said.
Blue-chip BRD closed down 4.84% at 11.8 lei on Wednesday on the Bucharest Stock Exchange.
($ = 4.3044 euro)
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