JP Morgan updated its analysis of OTP shares on Tuesday, with the previous HUF 12,900 target price being replaced by HUF 13,750, writes Világgazdaság.
A 25% rise in the exchange rate could lead to the new target level being met. JP Morgan expects a 7% loan growth from OTP instead of the previous 3%. The bank reduced its estimate for risk costs for 2020 from 180 basis points to 160. In the analyst model, JPM calculated a return on assets of 14.6%.
The target price was set without waiting for dividends due to known regulatory recommendations, although the expert notes that the bank’s stable capital position would allow the payment.
Regarding the 28% drop in the price of OTP shares this year, the JP Morgan noted that the rate of fall is equal to this yearʼs performance of bank securities in the CEEMEA regions.