Kaspi.kz: possible trinity (stays BUY)
The trinity of marketplace, payments and fintech keeps delivering in the face of the derating of the stock. We have revised our price target (PT) to USD 94.3/GDR (from USD 85.6 previously) for Kaspi.kz (Kaspi), and maintain our BUY rating. According to Bloomberg, the P/E of the business has dropped from 21x for 2023E in November 2021, to 8.6x currently. We empathise partly with the derating on the back of increasing capital costs globally, geopolitical risks around Kazakhstan, and the tech sell-off. It is not a surprise, in our view, that Kazakh assets would not be priced as aggressively against this backdrop. That said, it is also not inconceivable that Kaspi could rerate towards a 12.2x 2023E P/E with some change in market sentiment, given its quality, uniqueness, and the growth of the franchise. We believe there is value here, and would wait out the market rout.
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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