Yesterday Patria raised its 12M target price for Erste Bank stock to EUR 116 (from EUR 92) and downgraded its recommendation to sell from hold as the stock offers fundamentally no growth potential in the next twelve months.
Erste's consolidated earnings will maintain their strong growth dynamics in coming years due to an expected economic rebound in Austria, a decrease in income taxes and further improved efficiency in the group. However, these positive factors are already fully reflected in the current stock price.
Jan Hájek, Patria Finance