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Nov 1 2018, 08:20 GMT
Although AIB’s Q3 update reaffirmed progress on the bank’s medium-term targets, we reduce our forecasts to reflect lower lending growth assumptions. This reflects our new mortgage market forecasts and weaker SME loan demand given enduring Brexit uncertainty. AIB’s share price has fallen by 22% year-to-date, which is in line with the wider European banking sector. We therefore retain our ‘Neutral’ rating as our forecast changes reduce our price target to 510c (from 545c).