BNPQF - BNP Paribas: Back To Square One After Weak Q4 Results

2024-02-04 07:29:55 ET

Summary

• BNP Paribas shares have fallen sharply following Q4 results, with the stock materially underperforming the wider European financials space since prior coverage in October.
• Results were fairly weak, with the French retail bank and FICC trading revenue once again sources of softness, while 2025 financial targets were also lowered slightly.
• These shares still trade at levels seen in 2017. That is despite significant growth in EPS and an improvement in underlying profitability.
• A 0.9x tangible book value multiple, appropriate given the bank's earnings profile, would drive around 40% upside to fair value.

Covering BNP Paribas (BNPQY)(BNPQF) last October , I remarked that mixed Q3 results would do nothing to improve sentiment toward the stock. More recent results covering Q4 certainly won't help either, with the Paris-listed shares around 9% lower on the day post-release....

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