BAWAG Group confirmed at BUY, TP EUR 66 - Profitability and excess capital distribution ambitions intact
We leave our previous 12m TP of EUR 66 unchanged after the positive revision of our mid-term earnings forecast was neutralized by applying higher COE to reflect rising risk-free ratesThe management sticks to its 2025 strategic KPIs (published in September 2021) additionally supported by the expected monetary tightening cycle (conservatively we stay below the management guidance on the NII sensitivity)
Otherwise, BAWAGs investment case should be continuously driven by superior cost efficiency and a generous capital distribution capacity
Due to its proven M&A track-record since 2015, potential further deals should be considered as a tailwind for the underlying equity story
Trading multiples appear rather attractive in European context amid the awaited share buyback and robust excess capital generation capacity in mid-term
Bank fuer Arbeit und Wirtschaft is engaged in financial services. Co. maintains four segments: Retail and Corporate Customers, Key Accounts, Financial Markets, and Real Estate and Leasing. The Retail and Corporate Customers provides accounts and cards, e-banking, payments, savings, private and pension investments, and financing and leasing services to small and medium-sized enterprises. The Key Accounts segment involves in documentary business, financing, international payments, and e-banking activities. The Financial Markets segment provides treasury and investment banking. The Real Estate and Leasing segment includes real estate projects financing and real estate leasing activities.
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.
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