Davy downgrades BoI but talks up long-term prospects

Davy Stockbroker analyst Emer Lang has downgraded Bank of Ireland from “outperform” to “neutral” on the back of near-term challenges to its net interest margin, rising impairment losses, and limited growth opportunities.

However, the bank is an attractive medium- to long-term play on the Irish economy.

She said: “The bank will enjoy a market leading position in a recapitalised, consolidated, and right-sized banking system. Its fate is therefore linked to the medium- to long-term fortunes of the Irish economy. The Irish economy is stabilising and is expected to deliver attractive growth in the medium- to long-term.”