JPMorgan's forecast for Turkish stocks

JPMorgan upgraded its recommendation for Turkish stocks from neutral to 'overweight' in October 2023. The decision was based on positive developments such as the Central Bank's interest rate cuts. In a report prepared by JPMorgan analysts David Aserkoff and Inga Galeni, it was stated, "We expect the combination of rate cuts + economic recovery to boost the market in 1H25."

The report noted that Turkish stocks are trading at a 47% discount compared to their peers in emerging markets. This situation presents an attractive opportunity for investors. Analysts stated that BIST stocks have a 27.3% upside potential.

Although JPMorgan paints a positive picture for Turkish stocks, some risks remain. Analysts warned, "The most significant downside risk is a potential real depreciation of the TL, which we expect to begin only in 4Q25." Additionally, Turkey's capacity to become a technology production hub and the reservations of EM investors due to low weighting were also cited as risk factors.

News Source: 12punto