Initiation of coverage
Raiffeisen Bank International AG - Initiation of coverage
Thesis summary
Geopolitical pressure and heavy legal costs have weighed on earnings and clouded visibility, however we see relief ahead. Key recovery drivers include volume growth, operating leverage, a drop of the CHF legal costs, and the reinstatement of a formal dividend policy. A RU-UKR "peace dividend" is a potential catalyst. EPS acceleration and normalization of the RBI-Core earnings multiple add up to a highly attractive upside of > 50%. Furthermore, we see the potential value uplift from Rasperia litigation and various scenarios in Russia.
Given this pronounced valuation arbitrage opportunity, we initiate coverage with a Buy and end-26 TP of EUR 57.
marketing communication
The value of investments may go down as well as up, and you may get back less than you invest. Past performance is not a reliable indicator of future results. Nothing on this page constitutes investment advice or an offer to buy or sell any financial instrument.
Regulatory Disclaimer
Important information for research recipients
Roemer Capital research is a marketing communication. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of its dissemination. It is made available on the basis that each recipient in the EEA is a “qualified investor” within the meaning of Article 2(e) of Regulation (EU) 2017/1129 and is not a retail client as defined in Article 4(1)(11) of Directive 2014/65/EU (MiFID II). It is not directed to any person in any jurisdiction where such distribution would be contrary to law or regulation.
