BNP Paribas upgraded to Buy from Hold at Berenberg

Berenberg analyst Michael Christodoulou upgraded BNP Paribas to Buy from Hold with a price target of EUR 72, up from EUR 70. The long duration of French bank assets means that the recovery in domestic retail revenues and the incremental benefits from deposit hedges will take time to materialize, the analyst tells investors in a research note. Meanwhile, competitive pressures are likely to be sustained, says the firm. It believes the scope to offset potential revenue pressures with lower costs is uneven among the French banks. In this context, its relative preference is for BNP Paribas,