Axia-Alpha Finance lifts price targets for major Greek and Cypriot banks

Axia‑Alpha Finance upgraded its price targets for four banks in Greece and Cyprus. The new targets are €5.30 for Eurobank (up from €4.50), €17.50 for National Bank of Greece (up from €14.50), €10.60 for Piraeus Bank (up from €8.50) and €11.60 for the Bank of Cyprus (up from €10.90). The firm sees a possible rally of up to 27% driven by higher profit forecasts, lower cost of equity and favourable monetary‑policy conditions that should boost net‑interest margins while loan volumes remain strong.

The analysts note that Greek and Cypriot banks have outperformed the Euro Stoxx Banks index, gaining about 24.7% year‑to‑date versus a 12.9% rise for the index. Axia‑Alpha expects earnings and return‑on‑equity to improve to roughly 16% for 2026‑2028 and anticipates higher dividend payouts. The firm maintains a buy recommendation for all four stocks, citing attractive valuations (P/TBV around 1.45× and P/E near 9.4× for 2027) and the upcoming upgrade of the Greek market to developed‑status in September 2026.

Potential cross‑border merger and acquisition activity is highlighted, with a higher likelihood of deals involving non‑systemic banks and a low probability of mergers among the systemic institutions. Despite recent market volatility, the analysts advise a gradual accumulation of positions.