ANALYST VIEW - Morgan Stanley ups target price for Hungary's OTP, share price rallies
Morgan Stanley analysts changed their recommendation on OTP from underweight to overweight. The target price was set to HUF 27,000,
implying an upside potential of 28.6% compared to last Friday's closing price.
According to Refinitiv's database, this is currently the highest target price for OTP.
Currently, 11 analysts covering OTP have a 'Buy' recommendation, 3 a 'Hold' recommendation and there are no 'Sell' recommendations. The average target price on OTP is HUF 22,379.6, 6.6% higher than Friday's close.
Last week, Portfolio also published an analysis of OTP's pricing, arguing that there was plenty of room for the share price to rise. There is the pressure of the war in Ukraine on the region, including Hungary, and OTP's share price has been spectacularly depressed by the Russian invasion. The big question is how far US President-elect Donald Trump's peace pledge on Ukraine will take Hungarian bank share prices.
OTP's share price jumped 2.8% today on the back of the upgrade and TP hike.
Turnover is well above average, we are not even halfway through the trading period, and so far HUF 6.8 billion worth of OTP shares have changed hands, while the total average daily turnover over the past 30 days is HUF 8.6 billion.
Cover photo (for illustration purposes only): Getty Images
