Habib Bank Limited (HBL): Price recovery likely; Reinstating BUY with TP of PKR 140 – By BMA Research
<ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">Tectonic shifts in local fundamentals since Mar&rsquo;20 due to COVID-19 pandemic have pushed the local banking sector into a backdrop of low interest rates and low earnings visibility since Mar&rsquo;20. After heavy battering, we believe that it is now time to position for upside participation. That said, we reinstate our coverage on HBL with a Dec&rsquo;20 TP of PKR 140.</span></li><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">Price of HBL has corrected significantly with P/BV now hovering at 0.6x and P/E standing at 6.1x of CY20E earnings. In terms of P/BV, the stock is now at least over 80% cheaper as compared to its own 3yr average. As compared to 10yr average, this discount is well over 120%. Other metrics also...
