BofA Keeps SocGen at Buy Ahead of Capital Markets Day

06:11 AM EDT, 09/10/2026 (MT Newswires) -- BofA Global Research affirmed its investment case on Société Générale (GLE.PA), saying it sees "limited risk" of an overly growth-dependent strategy being announced at the French lender's capital markets day on Sept. 21. "SocGen is one of our '25 stocks for 2026' and on our 'Europe 1' list of top ideas. Our investment case is centred on a significant yet credible self-help driven profitability transformation, with [return on tangible equity] rising to 14% by 2029E. The key pillars are sustained cost discipline, improved capital efficiency and attractive shareholder distributions," according to a Wednesday note. "Growth should remain focused on French retail, particularly BoursoBank, alongside Financing & Advisory and Ayvens. Cost savings should be concentrated in French retail and central functions. As outlined in from good to great, we believe the long-term end-state for French retail is a predominantly digital banking model, with efficiency gains from converging BoursoBank and SG ultimately requiring a material reduction in FTEs across the SG network," analysts added. The research firm believes the company's midterm capital allocation will favor shareholder distributions, primarily through share buyback programs. BofA forecasts total distributions of between 17 billion euros and 20 billion euros over the next three years, representing 30% of market capitalization, or up to 35% including potential disposals. Against this backdrop, analysts reiterated their buy rating and price objective of 95 euros on the stock, adding that they still see room for additional valuation re-rating.