Berenberg announced Thursday that it has raised its price target for BNP Paribas from €74 to €82, while maintaining its Buy recommendation on the stock.

In a research note, the financial intermediary explains that it is optimistic about the French banking group's profitability trajectory.

When we upgraded BNP to buy last February, we felt that consensus earnings expectations were well anchored, but that the company's flexibility in terms of costs was underestimated", recalls the analyst.

He points out that the facts have proved him right, as market estimates for the 2024-2026 period have since been revised upwards, mainly in view of cost reductions.

In his view, BNP's capital deployment projects attest to its growth potential in terms of earnings, and point to a promising development in terms of profitability.

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