BRD-GSG: dividend disappointment (stays HOLD)
BRD’s shares remain fairly priced, in our view, despite the relatively soft performance ytd (+3.8% vs. +5.3% for the BET Index and +19.1% for the SX7E). BRD trades on a P/TBV of 1.3x and a P/E of 7x on our 2023E figures, in line with Banca Transilvania and at a premium to its regional peers. Although we expect a supportive outlook for 2023E, with a strong bottom line (net profit again above RON 1.3bn) and the reinstatement of dividends, we believe this is reflected in the current valuation already. We reiterate our HOLD rating on the stock, but raise our price target (PT) to RON 14.5/share, from RON 12.8 previously.
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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