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Jan 25 2018, 06:30 GMT
Ratings and price correct at time of issue
|Company||Rating||Date||Previous Rating||Date||Closing Price|
|AIB Group||NEUTRAL||03/08/17||Under Review||28/10/16||559c|
|Bank of Ireland||OUTPERFORM||11/03/13||Neutral||14/08/12||806c|
|permanent tsb Group||NEUTRAL||03/08/17||Outperform||03/10/16||233c|
2017 proved a year of contrasting share price performance within the Irish banking sector. We expect the early year recovery at BOI, our top pick for 2018, to continue. The outline of the new CEO’s vision at a Capital Markets Day in Q2 will strengthen the investment case. Mortgage market competition, non-performing loans (NPLs) and prospects for loan book growth remain the key themes for 2018, particularly as tracker examination fears recede. We also raise our price targets on BOI to 890c (+3.5%) and PTSB to 240c (+15%) to incorporate supportive management commentary from our recent North America conference.