Sberbank: Positives priced in, fair value (downgraded to HOLD)
In this report, we have downgraded Sberbank to HOLD, from Buy, with a new price target (PT) of RUB 280/common share (vs. RUB 232/share previously), yielding 4% upside from the current levels. The bank is trading at 7.4x P/E and 1.6x P/TBV on our 2018E estimates. We believe that Sber is probably still the highest-quality proxy for Russia, and its 2019E dividend yield could increase to as much as 7%, in our view. That said, we believe the positives have been priced in and the upside has diminished. Our model indicates 4% upside on the commons from these levels and, in our view, the stock is fairly valued, with limited prospects for a further re-rating on earnings upgrades or multiples expansion at this point.
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.