Wednesday, March 19, 2014

Seeking Alpha: Like The Black Knight, Societe Generale Isn't Dead Yet

French-based multinational bank Societe Generale (OTCPK:SCGLY) definitely got some parts lopped off during the credit crisis and European recession, but the bank has since proven that reports of its demise (or perpetual irrelevancy) were greatly exaggerated. The company's performance in 2013 was by no means flawless, and the company has much still to do, but patient shareholders have been rewarded with a nearly 70% rise over the past year and a 90% rise over the past two years.

Relative to distressed brethren like Citigroup (C), Bank of America (BAC), Santander (SAN), and HSBC (HSBC), Societe Generale has the best two-year performance of the lot, with only Bank of America coming close to challenging SocGen's return. Looking ahead, there is still a credible argument that SocGen can do better and see further re-rating. The company's ROE goal of 10% does not seem out of line and can underpin a $14 fair value, while outperformance in areas like Russia could offer some scope for upside.

Read more here:
Like The Black Knight, Societe Generale Isn't Dead Yet

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