Banks’ share prices set to surge

ANGLO IRISH BANK and AIB Bank share prices are expected to increase substantially according to stockbroking houses.

Anglo took the market by storm on Tuesday after a 33% surge in full-year profits to 346 million and Davy Stockbrokers banking analyst Scott Rankin has placed a 13.50 target on the shares which opened at 10.85 yesterday.

“Our 12-month share price target is also being raised to 1,350c, which is 24% above the current price. This represents a forward PE of just over 12x one year out, ie based on our September 2005 EPS forecast,” said Mr Rankin in a note to clients.