Meezan Bank Limited (MEBL): Asset re-pricing raises TP to Rs125, ‘Buy’ – By JS Research

<ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">We revise our earnings forecasts for Meezan Bank Ltd (MEBL) by an average of +10% for CY19E-CY20F, following higher-than-expected earnings reported by the bank in 4QCY18.</span></li><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">As a result, our Target Price moves north to Rs125, strengthening our &lsquo;Buy&rsquo; stance on the stock. MEBL remains one of our top picks from the banking space with capital upside of 35%.</span></li><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">We expect MEBL to record sustainable Tier I ROE average of 26% (CY19E-CY23F) led by (1) upward trend in NIMs and (2) double-digit asset base growth.</span></li><li><span style="font-family:Arial, Helvetica, sans-serif;font...