The stock split notwithstanding, the fundamentals at BoI remain unchanged. Its chairman Howard Kilroy purchased 17,500 shares prior to the stock split. Whatever the motivation might be of the chairman, BoI is still the same bank as it was prior to last Monday. In the short-term, BoI desperately needs some good news to drive the share price forward. With its next set of results not due until early November, the stock will need a positive announcement if it is to outperform the Irish banking sector in the interim period.
Some analysts believe the ratings are at least justified.
The latter has displayed a greater appetite for corporate activity with deals recently in Poland and Singapore and this makes it a more attractive at the minute than BoI, says the broker. BoI could buy back shares in an attempt to boost shareholder value. This is likely to be done in 1999 rather than 2000, according to Keane. This indicates that BoI will buy back shares in the event of no acquisitions or mergers appearing on the horizon. It would be one way of boosting the share price in the short-term.