Credit Agricole S.A.: Resume Coverage; FVE Suggests 25% Upside; Interesting for Dovish Investors

We resume coverage of Credit Agricole S.A. with a no-moat rating and a fair value estimate of EUR 14.50 per share; its current share price implies a 25% discount to our fair value. It trades at 0.8 times its 2022 tangible book value, in line with its average market rating over the past decade, but at 7 times its 2023 earnings, its forward PE ratio is meaningfully below its 9 times long-term average. Credit Agricole S.A.’s valuation is in line with the average European bank that we cover. Given its lower interest rate sensitivity, Credit Agricole S.A. could be an interesting option for investors with a more dovish view on interest rates and investors with a broader allocation to European banks could consider including Credit Agricole S.A. as a natural hedge in their portfolio to offset the rate sensitivity of other European banks.