ANALYST VIEW - HSBC sharply raises target price for Hungary's OTP
Until the end of August, OTP's share price continued to reach new historic highs. However, over the past month and a half, we have seen a slow correction phase in the stock.
OTP reached its all-time high on 21 August: at one point during trading, a share was worth HUF 31,000, while the closing high was HUF 30,970 on the same day.
Compared to this closing high, the share price is currently almost 6% lower, though
the bank's shares have risen by 34.7% so far this year.
Despite the minor correction phase, several analysts have significantly raised their target prices for OTP in recent months.
HSBC is currently leading the way with its highest target price yet.
The bank's analysts have raised their 12-month target price for OTP shares from HUF 32,200 to HUF 37,500, continuing to recommend buying the bank's shares.
This marks an upside potential of about 28.4% over the current share price.
Following this TP raise, HSBC now has the highest target price by far. Autonomous is in second place with a target price of HUF 35,146, while Wood is in third place with a target price of HUF 34,877.
According to LSEG data, OTP is currently covered by 14 analysts, of whom
- 11 recommend buying (including four strong buys);
- one recommends holding;
- and two recommend selling the stock.
The average target price is HUF 29,857, which is just 3% higher than the current exchange rate.
