Bank of America Merrill Lynch (BoAML) has confirmed its “buy” rating on French car manufacturer Renualt and raised its price target by €4 to €50. BoAML cites a solid performance in core business, and results ahead of consensus by affiliates Nissan and Volvo, and forecasts full-year net industrial debt will drop to €5.1bn.
Deutsche Bank reiterates its “buy” rating on BNP Paribas after second quarter net income was 15 per cent above its estimates. Deutsche Bank said that all indicators are in the green and that BNP passed its stress test easily, raising tier-one ratio to 8.4 per cent, with the only residual uncertainty the prospect of a French bank tax.
Despite a pre-tax profit of $11.1bn, 15 per cent ahead of consensus, Citigroup reiterates its “hold” rating on HSBC Holdings, saying that lower loan losses caused it to increase 2010 estimates but that its 2011 and 2012 revisions are mixed, with lower profits forecast at HSBC due to higher costs and a smaller boost from lower loan losses.