Deutsche Bank has downgraded Credit Agricole SA (EPA:CAGR) from "buy" to "hold" but left its target price unchanged at 20, citing a constrained set of catalysts and softer outlook for earnings per share growth. The decision was part of a broader re-evaluation of the French banking sector after banks reported fourth-quarter 2025 results.
The downgrade was noted in a sector note led by analyst Sharath Kumar, who observed that French banks overall produced a solid set of fourth-quarter 2025 results. Kumar highlighted retail operations and asset gathering as the standout areas within the peer group.
Within the same note, Deutsche Bank characterized corporate and investment banking results as mixed across institutions. Meanwhile, measures of asset quality, capital levels and capital returns mostly met expectations, according to the bank's assessment.
Credit Agricole was the sole firm to have its rating reduced in the update. Deutsche Bank identified a paucity of near-term catalysts and downgraded its view of the bank's prospective earnings per share growth as key reasons for the change in recommendation.
Cost dynamics were another factor in the assessment. Deutsche Bank described Credit Agricole's cost performance and forward cost outlook as lacklustre, in contrast to a stronger performance on that metric from peers BNP Paribas and Societe Generale. As a result, the firm placed Credit Agricole at the bottom of its recommended sector pecking order, trailing both BNP Paribas and Societe Generale.
Additional note on research tools mentioned in the original commentary - The research brief also referenced an external stock idea tool that evaluates BNPP alongside other companies each month using over 100 financial metrics. That tool was described as using AI to screen for risk-reward opportunities and cited past examples of notable winners, including Super Micro Computer (+185%) and AppLovin (+157%), while inviting readers to compare BNPP with other opportunities in the same space.
Contextual summary
In short, Deutsche Bank's downgrade of Credit Agricole reflects a view that, despite generally solid fourth-quarter 2025 results across French banks, Credit Agricole lacks compelling catalysts and shows weaker earnings momentum and cost execution compared with some peers. The firm's target price remained at 20, even as its recommendation shifted to "hold."