Bank of Ireland has suffered a major blow on the Dublin Stock Exchange this morning, with shares in the company falling below €1 for the first time in over 10 years. The stock is now down almost 90% from it’s peak in March 2007.
The bank’s shares lost more than 14% of their value in the first few hours of trading today.
Having abandoned its dividend and after seeing its first-half profits tumble by 35 per cent to €706m, Bank of Ireland now expects to only break even in the second half.
There is a point however at which the stock becomes good value and analyst Eamonn Hughes of Goodbody Stockbrokers upgraded Bank of Ireland to “buy” last Friday when the stock was worth 15% more than it is today. He set a target price of €1.90 on the stock which is more than 100% above what it is trading at as I write ( €0.94)