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
