SocGen faces 'subdued' 2023 before 2024 rebound - DB cuts to 'neutral'

Ayvens SA

14/02/2023 12:35

Feb 14 (Reuters) -    ** Deutsche Bank downgrades
Societe Generale  SOGN.PA  to "hold" from "buy", expecting
French retail revenues to come under more pressure than
previously expected, and global markets revenues to normalize
after a "strong run"
    ** DB finds it also "hard to envisage" that car financing
revenues grow higher after a "bumper" 2022 performance
    ** "European banks as a whole have become a more attractive
investment destination in the wake of recent ECB rate hikes" DB
says, but sees no favourable risk-reward for Societe Generale at
current levels 
    ** The brokerage expects "subdued" 2023 results from the
French bank, before significant improvements from 2024 
    ** The tailwinds from  higher NII in French retail, cost
synergies from mergers will materialise only in 2024, DB says,
adding it does not expect a buy-back from SocGen in 2024
    ** DB sees SocGen on track to meet its mid-term revenue and
cost targets
    ** Out of 23 analysts, 12 rate SocGen "strong buy"/"buy",
and​ 11 "hold"
    ** BNP Paribas  BNPP.PA  remains the only "buy" among the
French banks, DB adds, also reiterating "hold" on Credit
Agricole  CAGR.PA  
 (Reporting by Vittorio Maresca di Serracapriola)
 ((Vittorio.MarescadiSerracapriola@thomsonreuters.com;))