CRARF - Credit Agricole: A Conservative Outlook To Overlook

2024-04-18 05:24:20 ET

Summary

• Crédit Agricole's diversified business mix and better-than-projected cost/income ratio contribute to our positive view.
• Ambitions for 2025 were retained despite solid results (and higher Wall Street estimates).
• Here at the Lab, we like the management's cautious approach. Crédit Agricole's capital-light model will likely support earnings and capital generation. Our buy rating is confirmed.

As experts in EU banks, we have always held Crédit Agricole ( OTCPK:CRARF ) in high regard. Following our last update , Crédit Agricole reached our stock price of €13.1 per share. Two years ago, the company released an ' Ambitions 2025 ' plan; however, we believe Crédit Agricole estimated a prudent growth rate hypothesis and a conservative cost of risk, 3m EURIBOR +1.25% and 40 bases, respectively. For this reason, we were humbly above the company's future estimates and confirmed our overweight rating status....

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