Oddo BHF Upgrades Recommendation on Crédit Agricole
Oddo BHF has upgraded its recommendation on Crédit Agricole shares, moving from "neutral" to "outperform," with a price target raised from 18 to 20 euros.
The broker anticipates that net income for the fourth quarter of 2025 will be impacted by the initial equity accounting of Banco BPM, resulting in a charge of approximately 600 million euros. However, it considers this impact to be temporary and not detrimental to the group's medium-term potential.
According to the note, the cost of risk remains contained at 38 basis points, and the expected CET1 ratio of 17.76% remains well above the group's target.
The research firm also highlights a potential for stock market revaluation, pointing out that "the stock is trading at low multiples," with a 2027e P/E of 7.1x compared to a sector average of 9.3x, which "does not reflect the quality of the group's fundamentals."
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:
- finance, investment and market banking (31.3%): 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 (28.2%);
- retail banking (28.1%): 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);
- specialized financial services (12.4%): consumer loan, leasing and factoring (No. 1 in France).
At the end of 2025, Crédit Agricole S.A. managed EUR 894.5 billion in current deposits and EUR 559.2 billion in current credits.
NBP is distributed geographically as follows: France (47.7%), Italy (19.9%), European Union (15%), Europe (6.3%), North America (5.3%), Japan (1.1%), Asia and Oceania (3.4%), Africa and Middle East (1%), Central and South America (0.3%).
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