BOA SENEGAL report (February 2017)

​BOA SENEGAL current price (XOF 49 015) is higher than the fair value of XOF 43 000 based on the 2016 financial results. We recommend a SELL on BOA SENEGAL because the stock will face a downward pressure due to the anticipated decrease in Profit after Tax. Also, considering the low solvency ratio (8.49% compared to 8% required), the bank will necessarily need to recapitalize because of the coming prudential reform Basel 2 and Basel 3 expected in 2018. This reform could create a risk of dilutio...