MONETA Money Bank: locked into the merger (downgraded to HOLD)
We have downgraded MONETA Money Bank to HOLD (from Buy) and set our new 12M price target (PT) at CZK 105.6/share, offering 14% upside. Our view on the stock remains positive, on the margin, and the medium-term outlook may bring attractive returns and dividends. However, we believe that MONETA’s equity story in the next 12 months can be described as “locked within the merger”, which may limit both the near-term upside potential and the share price performance. While both our organic growth based and potential post-merger financial outlooks appear to be offering more returns, we believe that the total return to shareholders from a potential mandatory tender offer scenario is not attractive enough to yield a Buy rating. The potential tender offer has to be taken into consideration in the investment case for the next 12 years, in our view.Moneta Money Bank as is a Czech Republic-based retail and expanding small and medium enterprises (SME) bank. The Company holds an universal banking licence and provides a range of retail and SME-focused financial products and services. The Company operates through a national distribution network of 229 branches and through alternative distribution channels, such as the internet, its call centre, auto dealers, brokers and approximately 4,700 leasing partners. The Company together with its controlled subsidiaries offers current accounts, savings accounts, term deposits and transactional banking products including payment services and debit cards, consumer loans, credit cards, overdrafts, mortgages and auto loans, auto leases and other complementary products such as bancassurance and sales of investment funds.
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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