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Erste Group: Discount is not justified

In the third quarter, Erste Group made a pre-tax profit of 568 million euros. The consensus had expected 467 million euros. Above all, the commission income ensures the positive surprise for the Austrians.

In 2021 Erste Group plans to make a combined dividend payment for 2019 and 2020. The total could be 1.35 euros. This would be justifiable since the core capital ratio is a good 14.2 percent.

The analysts at DZ Bank confirm the buy recommendation for the shares of Erste Group. The experts see the price target for the papers at EUR 23.00. So far this was 25.00 euros.

The experts certify that Erste Group has a very stable and functioning business model. Thanks to the broad geographic focus, you should particularly benefit from the post-crisis recovery.

Erste Group’s shares are currently trading at a slight discount compared to its competitors. From the analysts’ point of view, this is not really justified. Due to the greater uncertainty, the analysts are also slightly lowering their target price for the shares.

The shares of Erste Group gain 3.0 percent to 17.98 euros in the early evening.

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