CRARF - Credit Agricole: Higher Targets Already Priced In (Rating Downgrade)
2024-05-13 03:35:12 ET
Summary
- A solid result driven by corporate and investment banking and international retail division.
- Credit Agricole expects to reach its 2025 Ambitions target a year ahead and increase forward earning estimates. Despite that, we were already pricing higher financial targets.
- After a positive Q1, we slightly increased our target price; however, the bank's valuation looks full compared to the EU Banking peers.
Following our Italian banking coverage ( Intesa Sanpaolo (IITSF)(ISNPY) and UniCredit (UNCFF)(UNCRY)), today we are back to comment on Crédit Agricole S.A. ( CRARF ) (CRARY). For our new readers, this is a French universal banking group with subsidiaries in Italy (Italian Optionality parts 1 and 2 ). The group's main activities include retail banking operations, insurance, asset management, and the corporate and investment banking division. In our last update, A Conservative Outlook To Overlook , we reported how:
- Crédit Agricole's diversified business mix and better-than-projected cost/income ratio contribute to our positive forward-thinking view;
- Ambitions for 2025 targets were retained despite positive results;
- The bank's capital-light model will likely support capital generation and earnings.