Deutsche Bank announced on Wednesday that it had upgraded its recommendation on Crédit Agricole shares from 'hold' to 'buy', with a price target raised from 13.5 to 17 euros, equivalent to a potential upside of 27%.

In a study of French banks, the analyst points out that CASA tends to outperform in an environment of low interest rates and controlled growth, thanks to its asset-light business model.

With the prospect of further interest-rate cuts and a more buoyant economic environment, the intermediary is increasingly confident in the green bank's ability to achieve its 2025 targets.

Deutsche adds that the stock's discount to other European banks is unjustified, in its view, given its profitability levels and business mix.

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