CRÉDIT AGRICOLE : Jefferies upgrades its recommendation to 'buy
June 12, 2024 at 02:38 pm
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On Wednesday, Jefferies raised its recommendation on Crédit Agricole shares from 'hold' to 'buy', with a price target raised to 21.6 euros from 13.4 euros previously.
In a note, Jefferies justifies its upgrade by a return on tangible equity (ROTE) in excess of 14%, by the prospect of a return to shareholders representing more than 50% of the current valuation in the form of growth in tangible net assets per share and dividends, and also by possible upward revisions to market forecasts.
In addition to questions of capital reduction, the broker considers the French company to be a "high-quality" player, able to capitalize on its integrated model as an insurer, asset and wealth manager and investment services provider, while highlighting its "influential" role in urban areas.
The broker adds that CASA's revenues are less correlated to ECB rate movements than those of other STOXX Europe 600 Banks components, offering potential diversification in the current context of monetary easing.
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Crédit Agricole S.A. is one of the leading European banking groups and is the leading financial backer of the French economy. Net Banking Product breaks down by activity as follows:
- retail banking (30.1%): activities in France (Crédit Lyonnais) and abroad. Furthermore, the group is present in France via its 39 regional networks of branches (making it the biggest French banking network);
- finance, investment and market banking (30.1%): standard and specialized bank financing activities (financing for acquisitions, projects, aeronautical and maritime assets, etc.), stock operations, consulting in mergers and acquisitions, investment capital, etc.;
- asset management, insurance and private banking (25.9%);
- specialized financial services (13.9%): consumer loan, leasing and factoring (No. 1 in France).
At the end of 2023, Crédit Agricole S.A. managed EUR 835 billion in current deposits and EUR 516.3 billion in current credits.
NBP is distributed geographically as follows: France (46%), Italy (20%), European Union (14.3%), Europe (7.2%), North America (6%), Japan (1.3%), Asia and Oceania (3 .5%), Africa and Middle East (1.3%), Central America and South America (0.4%).
CRÉDIT AGRICOLE S.A. 
