Denver, CO, 06/12/2014 (Stocksntrade) – Despite possessing the kind of fundamentals that at a cursory glance makes it seem undervalued, the National Bank of Greece (ADR) (NYSE:NBG) has actually been dragging along in 2014 and there are numerous factors that have contributed to this state. The macroeconomic conditions have been very poor and there is a constant worry about various toxic assets that have been dragging the company down. But analysts in the United States have now begun to take a much more favorable position on the prospects of the lender. This has led to a rise of more than 25% in the company’s shares since May 16.
One notable upgrade is the one that has come from the analysts at Nomura who upped the rating on National Bank of Greece (ADR) (NYSE:NBG) from a “reduce” to a rating of “buy”. But they also did a little cut on the PT simultaneously from 3.1 down to 2.9 Euros. However, this can also be accounted for by the fact that he company’s stock has dipped since the time they last commented on it. But there are many things happening at the largest lender in Greece of late. The company has plans of selling its stake in Finansbank AS of Istanbul as there is now a rise in the demand for bank assets in Turkey.
The Restructuring Plan
The bank now expects to submit its restructuring plan towards the latter part of the year that includes the sale of its “significant” minority stake in the Turkish firm as per a statement that was posted on the NBG site. The latest trend is that foreign lenders are literally snapping up various Turkish banking assets. It was just last month that ICBC of China also said that in May, that it will acquire the 76% stake that GSD Holding AS (GSDHO) holds in Tekstil Bankasi AS for $316M and Qatar Islamic Bank is also seeking a certain stake in the Asya Katilim Bankasi AS and National Bank of Greece (ADR) (NYSE:NBG) does not want to be left behind.