Initiation of coverage
OTP Bank PLC - Initiation of coverage
Thesis summary
We like OTP for its attractive valuation, supported by robust, sustainable organic and acquisitive asset growth, superb profitability, and an expected further reduction in the geopolitical risk premium. OTP’s presence across multiple geographies entails both benefits and risks, which are captured by our valuation model. Our end-2027 target price of HUF 56,000 offers a total return of 29%, comfortably outpacing the risk-calibrated opportunity costs. OTP’s large capital buffer signals further acquisitions and/or a substantial boost in dividends.
marketing communication
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