SCGLY - Societe Generale: Solid Results, But Pricey Valuation (Rating Downgrade)

2025-10-11 09:44:19 ET

Last year, we were buyers of Société Générale ( OTCPK:SCGLY )( OTCPK:SCGLF ) and reaffirmed the call in early February 2025; after a strong run (Fig. 1), we’re revisiting the name now on the heels of our BNP Paribas update and a tougher French policy backdrop. The Group has been through a tough spell, but a disciplined disposal program and tighter strategic focus are putting it back on track; our Buy rested on 1) a lower cost-to-income ratio evolution, 2) BoursoBank upside, 3) supportive results from the Investment Banking segment, 4) a solid capital buffer, and 5) Street consensus underestimation of the banking earnings....

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