BofA Ups BNP Paribas Price Objective, Forecasts After 'Strong' Q2 Earnings

12:06 PM EDT, 07/24/2026 (MT Newswires) -- BofA Global Research raised its price objective and forecasts for BNP Paribas (BNP.PA) amid expectations that the French banking group will upgrade its 2028 return on tangible equity target on the back of revenue growth. "BNPP delivered a strong 2Q26 performance, reinforcing our view of an improving profitability trajectory, with accelerating earnings growth (revenues +12% YoY) driven by significant progress in French and Belgian retail, Europe-Med, Personal Finance, and Global Markets (much of which appears sustainable), alongside enhanced profitability in Asset Gathering from the AXA IM contribution. Capital generation and a CET1 ratio above 13%, creating scope for higher distributions, were also key highlights," the research firm said Friday. "BNPP is entering a structurally stronger phase of profitability, with ROTE set to accelerate from 2026 as operating leverage, capital discipline and integration benefits fully materialise." The price objective was increased to 130 euros from 128 euros, while the stock's buy rating was reaffirmed. Analysts also lifted their net profit estimates by 1% over the 2026 to 2029 period, supported by higher expected revenue. EPS projections were also increased for 2026, 2027 and 2028. In terms of capital return, BofA expects total shareholder yield to reach between 10% and 13% annually over the next three years, while dividend yield is projected to be in the 7% to 9% per annum.