Wood and Company

WOOD & Company is the leading investment bank in Emerging Europe. Founded in 1991 and head-quartered in Prague, our footprint spans the region and touches investors around the globe.

A pioneer in Emerging Europe, WOOD executed many of the first CEE equity trades and landmark investment banking transactions. Our electronic trading platform was the first in the region, and remains the best. We are continually expanding our relevance and reach in these ever-evolving markets.

Our equity market share reflects our stature: 7% in Warsaw, 20% in Bucharest, 16% in Hungary, 40% in Prague and 5% in Vienna. Our distribution is unparalleled, with the largest salesforce in the region, servicing a uniquely diverse investor base.

We couple local expertise with a truly international perspective. With offices on the ground in the region, and in key financial hubs such as London and Milano, we are never far from our clients and we remain at the forefront of what’s afoot in the CEE emerging and frontier landscape.

Research Team
  • Research Team

WOOD Daily: PZU PW; ALR PW; PEO PW; RO Macro; GE Macro; CZ Macro; CEZ ...

HEADLINES: • PZU: discounted valuation for growing EPS and dividend yields (stays BUY) • Alior Bank: trading cheaply, but in stand-by mode (stays BUY) • Bank Pekao: complicated, but not value destructive (stays BUY) • Romania macro: a frail situation • Georgia macro: NBG keeps policy rate unchanged, at 8.0%; sanctions from the US and the UK • Czech Republic macro: CNB keeps policy rate on hold • CEZ: government takes new nuclear financing plan under advisement NEUTRAL • NEPI Rockcastle: pre-clos...

Alessio Chiesa ... (+2)
  • Alessio Chiesa
  • Raffaella Tenconi

WOOD Flash – Romania macro: a frail situation

The election period of 2024 has proved significantly more challenging than previous elections, and recent events show that we are not close to the end of the difficulties. The new parliamentary season begins today (20 December), and was meant to deliver an appointed government by the end of next week. The four pro-EU parties (PSD, PNL, USR and UMDR) have formed an alliance and released a policy agenda that signals the continuity of intent towards advancing the RRF reform schedule and improving t...

Marta Jezewska-Wasilewska ... (+2)
  • Marta Jezewska-Wasilewska
  • Miguel Dias

Bank Pekao: complicated, but not value destructive (stays BUY)

We have lowered our 12M price target (PT) slightly, to PLN 212.4/share (from PLN 227.5), as a consequence of our model adjustments. We have reduced our dividend payout ratio to 50%, from 62.5% previously, and rolled our model forward to 2027E. We are bought in to the potential equity story of Bank Pekao on its own, and see it as well positioned for a potential new lending cycle. It may also be boosted by the new management getting back on track with a decision-making process oriented towards mar...

Marta Jezewska-Wasilewska ... (+2)
  • Marta Jezewska-Wasilewska
  • Miguel Dias

Alior Bank: trading cheaply, but in stand-by mode (stays BUY)

We keep Alior Bank as a BUY and increase our 12M price target (PT) to PLN 114.3/share (vs. PLN 111.1 previously), which, in essence, is a valuation call. Alior is still the one of cheapest Polish banks under our coverage (2024-25E P/E and P/BV of 4.9-5.9x and 1.1-1.0x respectively) and offers a 10%+ dividend yield in the next 12 months. We see the bank as having a higher risk profile, and therefore, while the upside is appealing, especially the dividend yield, we see better risk-reward profiles ...

Marta Jezewska-Wasilewska ... (+2)
  • Marta Jezewska-Wasilewska
  • Miguel Dias

PZU: discounted valuation for growing EPS and dividend yields (stays B...

We rate PZU a BUY, with a new 12M price target (PT) of PLN 64.9/share, offering 42% upside potential. PZU is one of our top picks among the regional financials. We see its discounted valuation (2025E P/E of 6.8x and P/BV of 1.2x), and its status as one of the most reliable dividend payers in the region (9%+ yield next year), as attractive. This is in combination with positive fundamentals, including improving EPS momentum (our 2025E EPS is +18% yoy) and a medium-term performance supported by the...

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