Erste Group Bank upgraded to Buy from Neutral at Goldman Sachs

Goldman Sachs analyst Chris Hallam upgraded Erste Group Bank (EBKDY) to Buy from Neutral with a price target of EUR 69, up from EUR 59, as part of a broader research note previewing 2025 for European banks. 2025 may prove to be a “proof of concept” year for European Banks – one in which they withstand the reset in rates, with performance normalizing at a level which supports continued capital distribution and earnings growth, the analyst tells investors in a research note, adding the firm remains “selectively constructive” overall given volume tailwinds, revenue diversification, improved operating efficiency, and capital resilience. For Erste, the firm sees solid lending and fee growth underpinning future revenues, with EPS and dividends growing over its forecast period, combined with an “above-sector-average” ROTE and an “inexpensive” valuation.