KBC Group upgraded to Overweight at Morgan Stanley with bad news priced in

As previously reported, Morgan Stanley upgraded KBC Group to Overweight from Equal Weight with a price target of EUR 74, up from EUR 69. After a difficult 2023, the firm thinks the bad news on RWA inflation and NII is in the price for KBC and views NII guidance as conservative following the savings review outcome in Belgium. The firm’s rating change is in line with its team theme of leadership change in the sector and marking to market higher equity and fixed income valuations and lower rates at the end of 2024, the analyst added.