BGEO Group: Pull-back creates a window for entry (upgraded to BUY)
We are updating our estimates, rolling over our model and upgrading BGEO to BUY. The full 2017 results made us more sanguine on the valuation of Bank of Georgia (BoG), given the high ROTE base in 2017. We also retain our relatively constructive views on GHG (HOLD, GBP 4.07), as well as Georgia Global Utilities (GGU). Our new price target (PT) for the group is GBP 40.8/share, yielding 22% upside. Our revised numbers indicate a P/E of 9.1x for 2018E and a 1.5x P/BV. The stock has pulled back by c.13% in the past few weeks. BGEO Group is generally a well-priced asset and, given the improved upside and the recent retreat in the stock price, we believe these levels offer a decent entry point.
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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