Bank of Ireland Group Rating Lowered as RBC Notes 'Slightly Stretched' Valuation

05:17 AM EST, 12/08/2025 (MT Newswires) -- RBC Capital Markets downgraded its rating on Bank of Ireland Group (BIRG.IR, BIRG.L) to sector perform from outperform amid the group's "slightly stretched" valuation. "We still see Irish growth as attractive, with loan book expansion supported by a de-levered consumer and a government looking to correct a housing shortage. As the Irish population continues to mature, we expect that this will create a structural wealth growth opportunity, naturally bringing up AUM per capita towards levels seen in other countries," analysts said in a Dec. 5 note, anticipating banks to still have pricing power amid a highly concentrated market. "However, we are cautious around rate sensitivity, increasing competition, structurally higher costs and less developed tech." The price target for Bank of Ireland was maintained at 15.50 euros. The research firm added that it did not lower the company's rating to underperform as it expects top-line-driven earnings upgrades in 2026 for large banks in the country due to pretax consensus currently being at "too low" levels.