BNP PARIBAS : Jefferies raises its target slightly
July 03, 2024 at 04:12 pm
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Jefferies announced on Wednesday that it had slightly raised its price target for BNP Paribas from 95.6 to 95.9 euros, while renewing its buy recommendation on the stock.
In a note published ahead of the publication of second-quarter results, scheduled for July 24, the American broker believes that the market consensus seems to have missed a number of buoyant elements.
Among these, Jefferies says it has identified solid asset inflows in insurance, favorable momentum in the securities business, a beneficial effect of volatility and a lenient trend in credit costs in Italy.
The broker - who considers that all these factors will more than offset the slowdown in retail banking activity in France - thus expects second-quarter earnings to be 9% higher than analysts' consensus, not to mention any positive surprises from asset management and the strength of interest rates.
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BNP Paribas is France's largest banking group. Net banking product (NBP) breaks down by activity as follows:
- retail banking (54%): retail banking activity in France (24.1% of NBP), in Belgium (14.6%), and Italy (10.2%). The remainder of the NBP (51.1%) is from international activities and specialized financial services activities (consumer loans, real estate credit, leasing credit, car fleet management, computer equipment leasing);
- finance and investment banking (34.4%): consulting and capital market activities (83.7% of NBP; merger-acquisition consulting, activities related to the stock, interest, and exchange markets, etc.) and financing (16.3%; financing for acquisitions, projects, raw material transactions, etc.);
- institutional and private management and insurance (11.6%): asset management, private banking activity (No. 1 in France), real estate and on-line brokerage services, insurance and securities services (No. 1 in Europe for retained securities).
At the end of 2023, BNP Paribas was managing EUR 988.5 billion in current deposits and EUR 859.2 billion in current loans.
Net banking product is distributed geographically as follows: Europe, Middle East and Africa (82.9%), America (9.8%) and Asia/Pacific (7.3%).
BNP PARIBAS 
