Greek banks trade 1.3x P/TE on the back of a flow-driven  re-rating (3M: +55%) with no change in the DSA outlook. Credit quality remains the main challenge with Blackrock 2 and stress tests being the next catalysts. Economic/fiscal conditions have improved but the sovereign is still struggling. We reiterate our DOI rating on all banks covered… to access this report contact@researchgreece.com

Strong finish, strong start, tough not to own this…Jumbo continues to deliver in a class of its own. Finished 2013 strongly and most importantly started this year with a positive note. However we believe the current share price is discounting too much too soon. We work on normalised EBITDA margin of 27.3% vs. 31.5% for the market. We model gross profit margin drop of c100bps over the next three years. For the shares to move higher Jumbo must expand gross profit margins…to access this report  contact@researchgreece.com

The market appears to be too forward looking and perhaps too generous. Concluding on an implied 2014 P/E for our universe involves too many assumptions. Most of these assumptions are around banks and most importantly two years from now. Our universe could shed c14% as implied by our target prices; c10% for the total market. We conclude the market is not discounting earnings; it is discounting expectations. Banks are the buffer; market P/E moves meaningfully on >20% earnings surprise. We cover 70% of the total market cap – we rate all 16 companies as DON’T OWN IT…to access this report  contact@researchgreece.com

We initiate coverage on Greek equities with a structurally negative view. Equities covered account for c70% of the Athens’ exchange market cap. All shares rated as DON’T OWN IT (DOI). Motor Oil and Frigoglass screen better on a relative basis. Primary surplus is necessary but not good enough. Investments related structural reforms need to happen fast…for us to change our view…to access this report  contact@researchgreece.com

Bank of America Ready and Poised To Run Free of One Timers, Major Legal Matters and Major Asset Dispositions