Citigroup has raised its target price for Eurobank to €5.00 from €4.70, maintaining a buy recommendation following stronger first-quarter results and an upgraded profitability outlook.

The investment bank said that, based on a reference share price of €3.72 recorded on May 15, 2026, its base case implies an upside potential of 34.4 per cent, which rises to 38.5 per cent when including an expected dividend yield of 4.1 per cent.

The analysis, shared by Greek business outlet Newmoney, highlighted that Eurobank is entering 2026 with stronger momentum in net interest income and fee generation, supported by management’s medium-term targets, which have enabled Citi to revise its forecasts upward.

It added that estimates for normalised earnings per share have been increased by 4 per cent for 2026, 9 per cent for 2027, and 14 per cent for 2028, primarily driven by higher expectations for net interest income and commissions.

Scenario analysis also featured prominently in the report, with Citi assigning a bull case valuation of €6.10, representing a potential upside of 64 per cent, while the base case stands at €5.00.

In contrast, the downside scenario places the share price at €3.55, which is 4.6 per cent lower than the reference level.

The optimistic scenario assumes a return on tangible equity that is one percentage point higher alongside a cost of equity reduced by 100 basis points, while the negative case reflects a 1.5 percentage point lower return and a 200 basis point higher cost of equity.

The bank also reviewed Eurobank’s first-quarter performance, where normalised net profits reached €351 million, broadly in line with market expectations of €352 million.

Reported profits stood slightly lower at €331 million, affected by a €35 million cost linked to a voluntary exit programme involving 200 employees, which is expected to deliver annual savings of €14 million.

Citi pointed in particular to a 3 per cent quarter-on-quarter increase in net interest income, which exceeded consensus estimates by 2 per cent and reinforced expectations that the bank could surpass its €2.6 billion net interest income target for 2026.

Organic loan growth amounted to €1.1 billion during the quarter, with management expressing confidence in achieving a €3.8 billion organic credit expansion target for the year.

Fee income recorded a 20 per cent year-on-year increase, outperforming consensus forecasts by 4 per cent.

Looking ahead, Citi forecasts net profits of €1.45 billion in 2026, with earnings per share of €0.40, a price-to-earnings ratio of 9.2 times and a price-to-book value ratio of 1.3 times, alongside a dividend of €0.20 per share.

For 2028, net profits are projected to rise further to €1.76 billion, with the price-to-earnings ratio expected to decline to 7.4 times and the dividend yield to increase to 6.7 per cent.