Komercijalna Banka: Too expensive now (downgraded to SELL)
Following our downgrade from Buy to Hold earlier this year, we now downgrade the stock further, to SELL, due mostly to the continued share price appreciation. The stock has advanced 75.4% in the last 12 months, which has lifted our P/BV multiples to 1.6-1.7x for 2021-22E, premiums of c.32-39% vs. its peers. While some premium is justified, in our view, we see the current levels as rather too excessive, with downside of 23.0% to our new price target (PT), which we have reduced only marginally to MKD 8,466/share (from MKD 8,469/share). Otherwise, our positive take on Komercijalna Banka remains more or less unchanged, and we appreciate the growth potential of the North Macedonian banking sector, as well as Komercijalna’s conservative balance sheet, which still generates competitive ROEs.
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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