Bank of Cyprus: Market not convinced, but we are (stays BUY)
We remain bullish on Bank of Cyprus (BOC) after the release of a reassuring set of numbers this week. Although the stock price has been weak since our upgrade in October (down c.14%), our conviction in the story remains strong. Our reasons are: 1) the stock is trading at a very appealing 0.46x P/TBV (on our 2018E post IFRS 9), with a P/E ratio of 6.3x on a ROTE of c.7%; 2) its best-in-class progress in reducing the big NPE stockpile (down 20% in 2017, >40% from the peak), with decent coverage (51% post IFRS 9); and 3) the supportive macro environment, with GDP growth well above 3% for 2017E and 2018E, and green shoots in the property market. We retain our BUY rating on the stock, with a price target (PT) of EUR 3.7/share, which offers upside potential of 54% from current share price levels. On our PT, the stock still trades at a reasonable 0.7x P/TBV for 2018E, with a P/E below 10x.Bank of Commerce is a bank holding company. Through its subsidiary, the company provides a range of financial services and products for business and retail customers. The services the company provides include those offered by banks of similar size and character in California. The company's principal deposit products include the following types of accounts; checking, interest-bearing checking, money market, savings and certificates of deposit. The company also provides sweep arrangements, commercial loans, construction loans, term loans, consumer loans, safe deposit boxes, and electronic banking services. The company does not provide trust services or international banking services.
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.