Morgan Stanley: A vote of confidence in Greek banks – Sees a margin of up to 25%

The industry's investment story remains attractive - Overweight recommendation for Alpha Bank, Eurobank and Piraeus Bank - New target prices

Morgan Stanley starts covering Greek banks with a positive attitude, arguing that the industry's investment history remains attractive despite the strong rally of recent years. The American house maintains superperformance recommendations for Alpha Bank, Eurobank and Piraeus Bank, while it is placed neutral for the National Bank and CrediaBank, appreciating that the Greek economy continues to offer one of the strongest developmental profiles in Europe.

In the report, the company points out that the Greek economy is still based on strong domestic demand, investment and inflows of European capital, creating a particularly favourable environment for banks.

Morgan Stanley predicts an increase in Greek GDP by 2.1% in 2026 and 2.0% in 2027, with investments being boosted by about 5% a year. At the same time, it estimates that the country will continue to record high primary surpluses, while the debt-to-GDP ratio will decline to 131.5% by 2027.