DAVY VIEW

Execution of Bank of Ireland’s (BOI) organic transformation is substantially complete, with inorganic actions complementing this further, delivering material growth in sustainable profitability in the coming years, while interest rates also provide significant upside. This results in strong organic capital generation and returns, and a strategy moving into delivery mode with a balance towards distributions. We do not believe the current valuation reflects this; we increase our price target to €9.60 per share from €9.00 and retain our ‘Outperform’ rating.