Greece earns top spot in JP Morgan’s investor focus
JP Morgan has placed Greece firmly on its radar, describing the country as one of the top destinations for investors looking to reposition in emerging markets.
In its latest earnings review, the American investment bank singled out Greece as a standout performer, noting that the second quarter of 2025 was broadly lacklustre for emerging markets overall.
“Greece stands out as a bright exception,” the bank said, highlighting improving profitability and attractive valuations.
Among listed Greek companies that have published financial results so far, all core indicators have shown improvement.
Net profits have risen by 14 per cent compared to the same quarter last year.
Sales are up by 2 per cent and profit margins are also expanding, suggesting a more stable earnings environment.
Notably, none of the companies in the MSCI Greece index that reported earnings fell short of expectations—something J.P. Morgan called a rare occurrence in the region.
The bank’s analysis goes further by identifying Piraeus Bank as a key investment opportunity.
It maintains an “overweight” recommendation on the stock, with a target price of €8.20 and a projected dividend yield of 7 per cent for 2025.
“Valuation remains extremely low,” J.P. Morgan noted, with the stock trading at a forward P/E ratio of approximately 6.8 times, far below that of comparable European banks.
The bank added that capital returns to shareholders are now accelerating, which could act as a catalyst for further share revaluation.
While countries such as Poland and South Africa are showing strong earnings growth across the CEEMEA region, Greece, according to the bank, stands out for its consistency and solid fundamentals.
Turkey, by contrast, continues to face pressures, with falling profits and heightened uncertainty.
Strategically, JP Morgan remains upbeat on emerging markets as a whole.
It considers them undervalued and under-owned by global investors.
A weakening US dollar and the potential easing of geopolitical tensions provide favourable conditions for a broad market re-rating.
Greece, it argued, meets all the key criteria and remains one of the few markets in Europe with meaningful upside in equity valuations.
With average earnings growth in emerging markets currently around 4 per cent, the Greek market offers a compelling alternative for those seeking quality returns through value and dividends.
JP Morgan places Greece alongside other favoured destinations such as India, South Korea, Brazil, Poland, and the United Arab Emirates.
In this context, Piraeus Bank exemplifies the broader themes investors are seeking.
These include low valuation relative to fundamentals, improving capital structure, rising dividend payouts, and strong upside potential.
For JP Morgan, the Greek lender is not just an option, but a benchmark for investors re-entering the emerging markets space.