Economy
Hungary OTP share price hits new local peak
Stock markets worldwide have been refusing to correct; US stocks closed with minor gains yesterday however this was sufficient for the S&P 500 index to climb back to its latest peak in January. The next few days will be of key importance for future trends, be it a further increase or a downturn.
Friday’s US macro data may easily propel markets to new peaks if the figures are favorable. The BUX index of the Budapest Stock Exchange has started the day with moderate gains and broke through the 23,000 mark in the first hour of trading.
Among Hungary’s blue chips, OTP Bank deserves special attention thanks to a highly optimistic report by Nomura analysts who set a new target price of HUF 9,200 this morning, 50% above the current share price. As long as asset quality normalizes quickly, Nomura does not rule out the possibility of an even greater increase in value. OTP’s ROE may be above 20%, in this case the share price may rise to 12,000, the report claimed. Another forecast by Credit Suisse identified a relatively moderate, yet still optimistic target of HUF 7,200 per share. As a result OTP quickly rose to a new peak of HUF 6,334 this morning and is currently trading around 6,300.
Hungarian oil group MOL is also performing well at +1.1%, while the share price of Magyar Telekom has remained stable and Richter lost 0.2%.
Friday’s US macro data may easily propel markets to new peaks if the figures are favorable. The BUX index of the Budapest Stock Exchange has started the day with moderate gains and broke through the 23,000 mark in the first hour of trading.
Among Hungary’s blue chips, OTP Bank deserves special attention thanks to a highly optimistic report by Nomura analysts who set a new target price of HUF 9,200 this morning, 50% above the current share price. As long as asset quality normalizes quickly, Nomura does not rule out the possibility of an even greater increase in value. OTP’s ROE may be above 20%, in this case the share price may rise to 12,000, the report claimed. Another forecast by Credit Suisse identified a relatively moderate, yet still optimistic target of HUF 7,200 per share. As a result OTP quickly rose to a new peak of HUF 6,334 this morning and is currently trading around 6,300.
Hungarian oil group MOL is also performing well at +1.1%, while the share price of Magyar Telekom has remained stable and Richter lost 0.2%.
