Komercni Banka: There are still dividends left (stays BUY)
We maintain our BUY rating on Komercni as we believe that the bank is still a solid dividend payer in the region. Our new 12M price target (PT) is at CZK 999 (down from CZK 1,193 previously), eyeing 19% upside potential. The key reasons for the drop in our PT vs. our previous valuation are: i) reductions in the dividend payout ratio to 55% in 2016E and 60% in 2017-18E (down from 91%/90%/82%, respectively), due to an increase in the regulatory requirements; and ii) downward revisions in our earnings forecasts of 7-8% over 2017-18E due to weaker F&C, higher labour costs and provision charges. Despite the cut in dividends, due to the higher regulatory requirements, the bank is still a high dividend payer in the region, in our view, so we have decided to remain BUYers. Furthermore, due to the higher dividend yields and ROE, the bank should trade at a premium to its Polish peers, in our view.Komercni banka is a universal banking group based in the Czech Republic. Co. is engaged in the provision of a range of financial services in retail, corporate and investment banking. Co.'s operating segments include: Retail Banking, the provision of products and services to individuals, such as among others building savings, pension insurance, overdrafts, credit card and personal loans and mortgages; Corporate Banking, the provision of products and services to corporate entities such as foreign currency and derivative products, syndicated and export financing, and guarantee transactions; and Investment Banking, which involves trading in financial instruments.
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.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.