Raiffeisen Says “Buy” BRD Stock, Keeps RON16.6 Target Price

05.27.2011 By Andrei Cîrchelan

Raiffeisen changed the recommendation for BRD-Groupe Societe Generale (BRD.RO) stock from “hold” to “buy”, just a week after downgrade, while maintaining the 12-month target price at 16.6 lei (EUR4.02).

One week ago, Raiffeisen reduced the BRD target price to RON16.6 and recommended "hold", downgrading from "buy", because of lowered profit estimations and the slower-than-expected decline of risk costs.

In a memo issued Friday for investors, the Austrian bank's analysts explained that BRD stock is more attractive right now, after falling 3.2% over the past seven days.

The RON16.6 target price per share offered a positive potential of 14% compared to the market price a week ago, but potential calculated on the current market price reaches 17.7%.

At around 14:55 local time, BRD shares were up 0.7% on the Bucharest Stock Exchange, at RON14.2.

BRD is owned by French group Societe Generale. (EUR1=RON4.1315)