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Mar 30 2021, 07:15 IST/BST
Banks
A brighter future
- 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 | 220c |
| Bank of Ireland | OUTPERFORM | 11/03/13 | Neutral | 14/08/12 | 417c |
| permanent tsb Group | OUTPERFORM | 04/02/21 | Neutral | 06/03/19 | 108c |
DAVY VIEW
Irish banks have weathered COVID-19 and while returns targets have been pushed out, the future is brighter than anticipated. Significant actions on costs are ongoing, and inorganic opportunities present material upside, particularly from Ulster Bank Ireland’s exit. Valuations have increased but remain at a discount to the broader Eurobank sector which, in our view, doesn’t incorporate potential returns in the coming years. We reiterate our ‘Outperform’ ratings across all three covered stocks.
