Societe Generale's Self-Improvement Story Insulated From External Turbulences -- Market Talk

Dow Jones
2025/09/01

0921 GMT - The recent weakness in Societe Generale's shares due to political jitters in France provides an opportunity to buy into the stock, Deutsche Bank says in a research note. SocGen's stock is among the last remaining rerating stories based on the company's self-improvement, with potential for above-sector capital returns and profitability growth, analysts Sharath Kumar and Benjamin Goy write. The current political volatility could impact French banks' cost of equity in the near-term but the impact on earnings and capital ratios should be limited, they say. They estimate a single-digit basis point hit from their exposure to French government bonds. DB raises the stock rating to buy from hold and lifts its target price to 63 euros. Shares rise 1.4% to 53.44 euros. (elena.vardon@wsj.com)

 

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September 01, 2025 05:31 ET (09:31 GMT)

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