Equity
ANALYST VIEW - Morgan Stanley sets target price for Hungary's OTP sky high
- Morgan Stanley has raised its target price for OTP to HUF 14,122 from HUF 10,697 previously, and it has also upgrade the stock to ‘Overweight’ from ‘Equal Weight’. The new TP offers a 22% upside potential compared to Tuesday’s closing price on the Budapest Stock Exchange (BSE).
- Morgan Stanley has the highest target price for OTP, as it “dethroned" VTB that had a HUF 13,200 TP.
- The average of analysts’ target prices for the Hungarian banking stock is currently HUF 11,077, which is 4% lower than the market price. There are 12 ‘Buy’, 2 ‘Hold’ and 2 ‘Sell’ recommendations for the stock.
- The timing of Morgan Stanley is odd, as it chose to update its model before the release of the bank’s preliminary earnings report (Q4 2017) on Friday. According to analysts’ consensus forecast, OTP will report after-tax profit of nearly HUF 60 bn for October-December 2017.
