Citi cuts 2 euros from the price target for Erste shares

Analysts from the American bank Citi have cut the price target for Erste Bank (BCR’s majority shareholder) shares by 2 euros, from 69 to 67 euros, but maintained the recommendation to purchase. The adjustment in the price target was conducted amid a correction in the profit estimates per share: from 3.8 to 3.77 euros in 2007, from 4.62 to 4.45 euros per share in 2008, and from 5.67 to 5.52 in 2009. In the past week, Erste shares registered a rising trend on the Vienna Stock Exchange, and climbed from 55.5 euros per share to a 58.75-euro peak, followed by a correction that brought quotes to 57.36 euros. Erste’s listing in Bucharest could take place by the first quarter of 2008. At a September conference with investors, Erste’s management announced that it would maintain its annual profit growth target by 20% on average, until 2009. For 2007, the group expects the BCR to register the highest profit increase – 40%, followed by Ceska Sporitelna – 15-20%. On November 12, Andreas Treichl, CEO of Erste Bank, will receive the “manager of the year 2007” title from the Vienna University of Economics, for his “faultless vision in opening up new markets”.