Bank of America reaffirms its 'buy' recommendation and €36 price target on Societe Generale, one of its '25 stocks for 2025', and adds it to its 'Europe 1' preferred stock list.

After an inflexion in profitability in the French retail bank and changes in management, the broker considers the share 'ready for the next stage in its history, which will probably entail a significant revaluation'.

We believe that SocGen should become one of the most attractive European stocks in terms of return on capital by 2025, with 40-55% of market capitalization over the next three years', continues BofA.

In addition, it sees a faster improvement in profitability and potential for higher payouts thanks to cost and capital efficiency measures, and 'all this at 2026 P/E ratios of 4x, P/TBV of 0.4x and a ROTE of 10%'.

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