Bank of Ireland shares ‘unjustifiably cheap’

BANK of Ireland shares are “unjustifiably cheap” and a buy with a low risk, according to leading US stockbroking firm Smith Barney which is owned by Citigroup.

In a research report entitled "Bank of Ireland The Second Worst Bank in Europe? - We don't think so" Smith Barney put a 12.50 price target on the shares which closed at 10.77 yesterday.

The US securities firm notes that Bank of Ireland has underperformed the European banks index by 27% since the start of 2003 and by 4% since the start of this year.