Allied Irish Banks (AIB)

[Investorman]

AIB lifted to buy from hold at Societe Generale

MADRID (MarketWatch) -- Allied Irish Banks (NYSE:AIB) (THE:IE:AIB) was upgraded to buy from hold on Tuesday at Societe Generale, which said the bank has "inherent value" and lifted the target price to €1.60 from €1.35.

SocGen said AIB remains leveraged to the outcome of new equity to be raised and 2010 tangible equity, and shares will remain volatile until the market gets certainty on this. Asset disposals and pricing will be catalysts it said, while questions remain over the eventual level of state ownership. Societe Generale said Irish banks are a fundamental call on Ireland, which they say is not Greece. "We are positive on the economic recovery and believe Ireland is well placed to withstand the recent refocusing on risk related to southern Europe," said the investment bank. For Irish banks, margin recovery can pick up the slack left by fee income, said SocGen.