Davy price target lowered23 Jan 2019 13:48
Irish banks
Monthly update: the price you pay
The wider move in bank credit spreads in recent months prompts us to revise our issuance assumptions, with c.2% downgrades to forecast profits. Solid progress in 2018 towards end-2020 targets by AIB (40% complete) and BOI (25/30%) limits the impact of market-wide repricing. We modestly lower our price targets: BOI 890c; AIB 500c; and PTSB 235c, but move our recommendation for AIB to ‘Outperform’. Irish banks have started 2019 in positive territory, outperforming the wider sector as hard-Brexit risks recede.