J. P. Morgan raised its rating on Bank of Ireland (AIB) to overweight, citing Ireland's robust foreign direct investment (FDI) growth as a key driver.

The brokerage lifted price targets to €10.70 and €17.80, reflecting optimism about Ireland's economic tailwinds and AIB's undervalued yields. FDI approvals surged 38% in 2025, reaching 323, including Novo Nordisk's €432 million factory upgrade commitment. AIB's stock trades at 9.3x 2027 earnings, but the brokerage notes its total yields of roughly 10% annually, boosted by buybacks. Stabilized deposit betas at 20% and strong loan growth (6.0% YoY) support the bullish call, with AIB's CET1 ratio at 16.2% well above its target. Management expects Pillar 2R capital requirements to ease as efficiency improves, potentially freeing capital for returns.

AIB plans significant investment (€400 million in 2026) in mobile app development and peer-to-peer payments to counter competition from Revolut and Bankinter.