JPMorgan analysts Mehmet Sevim and Samuel Goodacre shared their analysis dated January 23. In their analysis, they stated that they are approaching the fourth-quarter earnings season, which begins on January 29, with caution and have placed Akbank, Garanti BBVA, İş Bankası, and Yapı Kredi on their 'Negative Catalyst Watch' list.
The bank stated that they are excited about the macroeconomic normalization process in Turkey and anticipate that it will result in a positive long-term outlook for the banking sector.
CAUTIOUS APPROACH TO THE FOURTH QUARTER
However, emphasizing that the Turkish banking index has gained 12 percent since the beginning of the year compared to bank stocks in the CEEMEA region, the bank noted that it is approaching the fourth-quarter earnings season with caution.
RISK FROM EXITING KKM
The bank's analysis predicted that the core operational trend could deteriorate in the short term. JPMorgan's analysis also stated that efforts to exit currency-protected deposits (KKM) pose additional risks.
Following the bank's analysis, the investment recommendation for Akbank, Garanti BBVA, İş Bankası, and Yapı Kredi was set to 'neutral.' JPMorgan raised its target price for Akbank from 42 TL to 45 TL, and for İş Bankası from 26.20 TL to 30 TL.
In its analysis, JPMorgan lowered the target prices for Garanti BBVA and Yapı Kredi. The bank reduced the target price for Garanti BBVA from 73.50 TL to 72.40 TL, and the target price for Yapı Kredi from 28 TL to 27 TL.
News Source: 12punto
