JP Morgan Flags Greece as Prime Investment Destination in Emerging Markets Outlook

JP Morgan has firmly placed Greece in the spotlight, identifying the country as one of the top choices for investors seeking to reposition themselves in emerging markets. In its most recent earnings review, the American investment banking giant described Greece as a standout performer, noting that while the broader emerging markets landscape remained muted in the second quarter of 2025, Greece defied the trend with strong and consistent results.

“Greece stands out as a bright exception,” the bank remarked, pointing to robust profitability metrics and appealing valuations across Greek-listed firms. Among those companies that have reported financial results for the second quarter, every core indicator has shown notable improvement. Net profits surged by 14 per cent compared to the same period in 2024, while sales climbed by 2 per cent. Profit margins are also on the rise, indicating what JP Morgan sees as a “more stable earnings environment.”

A particularly rare and telling signal of Greece’s momentum, according to JP Morgan, is that none of the companies included in the MSCI Greece index have reported earnings below expectations. The bank emphasized the uniqueness of this trend in a region often characterized by volatility and earnings disappointments.

The investment bank’s analysis went further, singling out Piraeus Bank as a top investment opportunity within the Greek market. JP Morgan maintains an “overweight” rating on the stock, with a target price of €8.20 and an estimated dividend yield of 7 per cent for 2025. “Valuation remains extremely low,” the bank noted, citing the stock’s forward price-to-earnings ratio of approximately 6.8 times—markedly below that of its European banking peers. In addition, JP Morgan highlighted accelerating capital returns to shareholders as a significant catalyst for further share revaluation.

While countries such as Poland and South Africa are also showing strong earnings momentum within the CEEMEA (Central and Eastern Europe, Middle East, and Africa) region, Greece is, in JP Morgan’s view, distinguished by its consistency and sound economic underpinnings. In contrast, Turkey continues to struggle with declining profits and elevated macroeconomic uncertainty, placing it in a more precarious position compared to its regional peers.

Strategically, JP Morgan continues to view emerging markets in a favourable light, arguing that they remain undervalued and under-owned by the global investor community. Factors such as a weakening US dollar and a potential de-escalation of geopolitical risks are seen as supportive elements that could pave the way for a broad-based market re-rating.

Within this context, Greece meets all of JP Morgan’s essential criteria, standing out as one of the few European markets offering significant upside potential in equity valuations. With average earnings growth across emerging markets currently hovering around 4 per cent, Greece presents, in JP Morgan’s words, a compelling proposition for investors targeting value and dividend-driven returns.

JP Morgan places Greece alongside other preferred investment destinations including India, South Korea, Brazil, Poland, and the United Arab Emirates. The bank argues that Piraeus Bank is emblematic of the broader investment themes that are resonating with global investors—namely, low valuations supported by strong fundamentals, enhanced capital efficiency, rising dividend distributions, and compelling upside prospects.

For JP Morgan, Piraeus Bank is not just one investment opportunity among many, but a benchmark stock for investors looking to re-enter the emerging markets arena with confidence.

By fLEXI tEAM