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Jan 23 2019, 07:50 GMT
Ratings and price correct at time of issue
|Company||Rating||Date||Previous Rating||Date||Closing Price|
|Bank of Ireland||OUTPERFORM||11/03/13||Neutral||14/08/12||555c|
|permanent tsb Group||OUTPERFORM||01/08/18||Neutral||03/08/17||160c|
The wider move in bank credit spreads in recent months prompts us to revise our issuance assumptions, with c.2% downgrades to forecast profits. Solid progress in 2018 towards end-2020 targets by AIB (40% complete) and BOI (25/30%) limits the impact of market-wide repricing. We modestly lower our price targets: BOI 890c; AIB 500c; and PTSB 235c, but move our recommendation for AIB to ‘Outperform’. Irish banks have started 2019 in positive territory, outperforming the wider sector as hard-Brexit risks recede.