UBL: Near term headwinds; outlook remains sanguine - By Sherman Research

<p></p><ul><li><span style="font-size:medium;">We initiate coverage on United bank Limited (UBL), with a &lsquo;Hold&rsquo; recommendation based on Dec&rsquo;17 target price of Rs265/share. The stock offers a modest total return of 14%, including potential upside of 9% at the current price of Rs243.9/share and a prospective dividend yield of 5%. We believe the market has adequately priced in all the positives, as the stock is trading at CY17/18E P/B of 1.8/1.7. However, any weakness in share price, should be taken as an opportunity to accumulate the stock.</span></li></ul><ul><li><span style="font-size:medium;">UBL is the second largest bank by market capitalization and the third largest bank in terms of deposits. The bank has been able to maintain its profitability ratios consistently on higher side as it has delivered ROE (Tier ...