We Raise Credit Agricole's FVE to EUR 15 From EUR 10; Capital Allocation Rating is Standard

We increase our fair value estimate for Credit Agricole to EUR 15/share from EUR 10/share previously. The sharp increase is the result of the more bullish view we have taken on Credit Agricole’s cost of equity, which we have lowered to 9.5% from 11.5% previously. Under our new capital allocation framework, we also now rate Credit Agricole’s capital allocation as Standard compared with the Poor rating it held under our previous stewardship methodology. We maintain our no moat rating.