Investment bank Raiffeisen Centrobank has upgraded its rating on Austria’s BBAG to “overweight” from “neutral”, as the potential for a merger increased.
In a research note, RCB said BBAG’s current valuation did not take into account the group’s large real estate holdings.
But it also pointed out that the group’s strategy of seeking market share in the faster growing economies of central and eastern Europe was also paying off, while speculation since BBAG said in January it was seeking a strategic partner about a potential merger was driving the share price.
