Sberbank: Value over bottom-up momentum (stays BUY)
We stick to our BUY rating on Sberbank (commons), despite having adopted a more conservative stance on its longer-term profitability, due mainly to the downbeat NIM trend. We believe the stock is still inexpensive, and value outweighs the underwhelming bottom-up outlook. Our PT on the commons yields a decent 22% upside, with reasonable and conservative assumptions. We also see the current multiples as attractive in the context of the historically low interest rates in Russia, which feeds through to our valuation favourably. Having turned more cautious on profitability and not betting on earnings upgrades, we believe the bank’s earnings power is still around the robust 20% ROE mark. We rate Sberbank’s commons a BUY, with a RUB 286/share price target (PT). The stock trades at 5.6x P/E and 1.1x P/TBV on our 2020E estimates.Sberbank Russia is an open joint stock commercial bank. Co.'s principal business activity is corporate and retail banking. This includes, but is not limited to, deposit taking and commercial lending in freely convertible currencies, local currencies of countries where the subsidiary banks operate and in Russian Roubles, support of clients' export/import transactions, foreign exchange, securities trading, and trading in derivative financial instruments. Co.'s operations are conducted in both Russian and international markets. As of Dec 31 2014, Co. had total assets of RUB25.20 trillion.
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.