On Friday, Societe Generale was the biggest riser on the Paris Bourse's CAC 40 index, after Deutsche Bank upgraded its recommendation on the stock to "buy".

At around 2:15 pm, the French banking group's shares gained nearly 3%, while the CAC 40 index advanced by 1%.

Deutsche Bank announced this morning that it had upgraded its recommendation on the stock from "hold" to "buy", with a price target of 34 euros, indicating a potential appreciation of 45%.

The intermediary justifies its decision by the fact that several favorable elements are on the horizon for the establishment up to 2024, starting with a recovery in net interest income (NII) from the retail banking division in France.

The analyst also points to the forthcoming materialization of cost reductions resulting from the restructuring of the branch network, as well as the positive effects of the merger between ALD and LeasePlan.

"The solid quality of its assets, the correct level of its available capital and return on capital, and a cheap valuation complete this investment case", adds DB.

Copyright (c) 2023 CercleFinance.com. All rights reserved.