BofA analyst David Taranto wrote that private banks are “ready to be revalued”, referring to the expectation of a recovery in the sector in the second half of 2024, which he called the “transition year”.
Taranto raised his earnings per share forecasts for Turkish banks by an average of 14 percent for 2024-2026.
According to the analyst, who wrote that the “quiet” profitability in the first quarter will be compensated by a rapid recovery after June, next year looks “promising” as inflation will decline and book value growth will outpace annual profits.
BofA predicted a 57 percent return in lira terms and a 20 percent dollar return for private banks.
Earlier this month, Goldman Sachs also raised its earnings forecasts for Turkish banks.
BofA maintained its buy recommendation for Akbank, Garanti, Yapı Kredi and İşbank, while maintaining its below-index recommendation for state-owned banks Halkbank and Vakıfbank.
Bank of America’s analysis listed the new target prices as follows