Equity
ANALYST VIEW - New target price of around HUF 10,000 for Hungary's OTP
- It was Morgan Stanley yesterday, and Citi today that raised the target price significantly for Hungary’s OTP. Morgan Stanley’s new TP is HUF 10,143, and Citi has raised its target price to HUF 9,965, which offers a 17.6% upside potential compared to Tuesday’s closing price on the Budapest Stock Exchange (BSE). Citi’s new recommendation is ‘Buy’ vs. ‘Neutral’ previously.
- Citi’s rationale is the following: 1. Risk costs are expected to remain low at OTP, 2. Gross loans can expand further, 3. Non-interest income may rise further; 4. Costs are expected to rise by less than income.
- The key risk for OTP is the introduction of consumer-friendly mortgage loans.
- OTP’s share price rose sharply by nearly 1.6% to HUF 8,614 currently.
