Siauliu Bankas: A return to the growth path (stays BUY)
We remain positive on Siauliu Bankas, maintaining our BUY rating and increasing our price target (PT) to EUR 0.80/share (from EUR 0.57/share). The stock is up 28% ytd, but we believe that the re-rating has more room ahead, as the stock remains attractively priced, at a 2021E P/BV of c.1.0x, and a P/E of c.8x on a ROE of 12-13% and a TCR close to 20%. On top of this, the bank has a credible growth story, in our view. The loan book is growing currently by 10% yoy (as of 1Q21), and we expect a three-year loan book CAGR of 11%, up to 2023E.Siauliu bankas AB is a Lithuania-based company engaged in the provision of commercial banking and financial services to private and corporate clients. It offers such services as provision of bank accounts, offering the debit and credit cards and safety deposit boxes, cash and non-cash money transfers, operations with securities, currency exchange, lending and investment services, Internet banking, financial brokerage and real estate development. It also issues monetary warranties, guarantees and other warranty liabilities, as well as performs operations with payable documents, such as checks and others. The Bank has several branches, numerous client service units and subsidiaries.
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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