Baader Bank initiated at BUY, TP EUR 10.3 - A good play on global trading euphoria
We initiate the coverage of Baader Bank with a TP of EUR 10.3 and a BUY recommendationThe bank runs an integrated business model combining Market Making, Brokerage incl. Capital Markets, Asset Management, Banking and Research and as such offers trading, settlement and banking services
The stock has rerated on the wings of global trading euphoria since H1 20 which triggered a massive increase of trading revenues and significant rise in ROE following the years of restructuring and weak profitability
Its good market position combined with expected further, though decelerating growth path of trading revenues, should keep ROE at above 25% over next 3 years which is in addition backed by relatively attractive valuation compared to the peer group and a solid dividend potential
We use a combination of Gordon Growth Dividend discount model (75% weight) and peer group based multiples (25% weight) to derive our 12m TP
Baader Bank is a securities trading bank. In market making, Co. provides its customers services for pricing, trading and settlement of financial instruments on the global capital markets. In investment banking, Co. concentrates in German, Austrian and Swiss equities. Co. provides institutional investors trading and distribution unit for equities, bonds, futures and options. Co. also advises medium-sized company's inequity and debt capital market transactions such as IPOs, corporate actions, bond issues and the structuring and placement of promissory notes.
The Institutional Equity Research team of Raiffeisen Bank International AG covers 85 stocks from Austria, Central & Eastern Europe with sell-side research and thus levers our local broker status with excellent company relationships. For corporates in Austria, CEE and Western Europe, we offer co-sponsored research, which includes research coverage and marketing activities to investors. Additionally, through our Spotlight Research product we also shed light on leading European small and micro-caps, seeking greater visibility with investors.
The Institutional Equity Research team consists of roughly 15 analysts, both in Vienna and the CEE countries. Our analysts provide long-standing sector expertise in tandem with profound local market know how and a sectoral approach across the entire region.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.