Analysts covering the Bank of Cyprus have significantly raised their price targets following the release of the bank’s preliminary financial results for 2024.
All recent revisions indicate a more optimistic outlook compared to previous estimates.
A key factor driving these upward adjustments is the bank’s updated profit distribution policy.
In its preliminary results announcement, the Bank of Cyprus stated its intention to improve its profit distribution ratio for the 2025-2027 period, setting it between 50 and 70 per cent.
This marks a substantial increase from the 30 to 50 per cent range announced last year.
Despite a forecasted decline in net profits for 2025, analysts have responded positively to the bank’s strategy, revising their price targets upwards.
The latest analyst reports suggest considerable upside potential for the bank’s shares, with price targets notably exceeding the stock’s last trading price of €5.50.
HSBC provided the most bullish estimate, setting a target of €7.65, which implies a potential increase of approximately 39 per cent.
HSBC’s report is also the most recent among those issued by financial analysis firms.
Keefe, Bruyette & Woods followed with a price target of €7.29, indicating an expected rise of around 33 per cent.
Meanwhile, Euroxx Securities and Deutsche Bank both set a target of €7.10, projecting a 29 per cent increase.
However, Deutsche Bank’s forecast dates back to November 2024, before the release of the bank’s full-year results.
Piraeus Bank and Wood & Company offered more conservative projections, with price targets of €6.20 and €5.83, respectively.
These figures represent potential gains of approximately 13 per cent and 6 per cent from the latest trading price.
Bank of Cyprus continues share buyback programme
Meanwhile, the Bank of Cyprus has moved ahead with a new share purchase as part of its ongoing share buyback programme, which was announced last month.
Specifically, the Bank of Cyprus Holdings Public Limited Company confirmed that between March 7-13, 2025, it acquired a total of 237,903 ordinary shares with a nominal value of €0.10 each.
The purchases were made on the Cyprus Stock Exchange and the main market of the regulated market of the Athens Stock Exchange through the bank’s appointed broker, the Cyprus Investment and Securities Corporation Ltd (CISCO).
The acquired shares are set to be cancelled upon completion of the buyback programme.
According to the bank’s announcement, these transactions form part of its broader plan to repurchase shares with a total allocation of up to €30 million.
The programme, which was formally announced on February 18, 2025, aims to improve shareholder value by reducing the number of outstanding shares.
