RBC Lifts Crédit Agricole Price Target on New Medium Term Strategic Plan

01:57 AM EST, 12/19/2025 (MT Newswires) -- RBC Capital Markets updated its model and price target for Crédit Agricole (ACA.PA) to incorporate the French lender's new medium-term growth strategy presented in November. On Thursday, the research firm raised the sector perform-rated stock's price target to 19 euros from 18 euros, noting the bank's sustained cost control efforts. "Casa aims to deliver positive jaws (at least 1 [percentage point per annum]) over the [medium-term plan] to 2028, lowering the cost income ratio over time. Casa plans to invest with targeted cost savings offsetting inflation. The question will be the timing of investments vs cost savings and revenue uplift. We model that Casa will deliver its targeted cost income ratio of below 55% by 2028 but as a combination of lower costs and lower revenues, which might be too optimistic," analysts wrote. RBC said its forecasts ticked up, but the "largest gap" between its estimates and the company's targets, sitting 3% below the lower end of management's range, is due to the lack of clarity regarding capital investment assumptions.