STOCKWATCH - RCI Upgrades Societe Generale's Romanian Arm BRD to 'Hold' from 'Reduce', Ups Target Price

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)