Banca Transilvania: bad news in the price, time to re-rate (upgraded to BUY)
We have upgraded Banca Transilvania to BUY (from Hold), in view of its excessive discount vs. its peers, and the strong outlook ahead. Following the recent share price under-performance (down 14% in 2022, -4.1% ytd), Banca Transilvania now trades at a P/E of 5.2x on our 2023E earnings, a discount of c.30% vs. its 10-year average, its regional peers and local peer BRD. The P/TBV appears high on 2022, but falls materially from 2023E-onwards, due to the build-up in equity via strong earnings capacity and the revaluation of the bond portfolio. We have increased our price target (PT) to RON 27/share (from RON 20.2/share).
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.
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.