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Jan 23 2019, 07:50 GMT
Banks
Monthly update: the price you pay
- Sectors : Banks
- Companies : permanent tsb Group | AIB Group | Bank of Ireland
Ratings
Ratings and price correct at time of issue
| Company | Rating | Date | Previous Rating | Date | Closing Price |
|---|---|---|---|---|---|
| AIB Group | OUTPERFORM | 23/01/19 | Neutral | 14/08/18 | 396c |
| Bank of Ireland | OUTPERFORM | 11/03/13 | Neutral | 14/08/12 | 555c |
| permanent tsb Group | OUTPERFORM | 01/08/18 | Neutral | 03/08/17 | 160c |
DAVY VIEW
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.
