Bank of Cyprus: strong ROTE uplift on the cards already (stays BUY)
In our September 2022 update, we increased our 2022-23E net profit forecasts for Bank of Cyprus by over 90%. This was not enough and, post the 3Q22 results, we now increase our estimates further, by another 30-40%. The stock is one of the best plays on the ECB’s rate hikes (large liquidity, low L/D ratio, floating rate loans) and the risk for our earnings forecasts remains on the upside. Although the stock is up 46% ytd, it remains extremely cheap, trading at a P/TBV and P/E of 0.35x and 3.4x, respectively, on our 2023E. We remain BUYers, and we increase our price target (PT) to EUR 2.7/share, from EUR 2.5/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.
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