Oman Arab Bank SAOG 8/10/2020| MENAFN.COM

Thursday, 19 May 2022 07:23 GMT
Capital Investments- Monday, August 10, 2020
We initiate coverage on Oman Arab Bank (OAB) with a 12-month target price (TP) of OMR 0.225 per share, offering limited upside to the current market price, and implying a P/E’20 of 16.5x and P/B’20e of 1.0x. We assign it an Accumulate rating. Our weighted average TP is derived using Excess Returns model (80% weight) and peer-group P/B’20e Multiple-based valuation (20% weight). For excess returns, we value the bank using a combination of the book value and a present value of excess returns over the forecast period, i.e. the amount by which 2020-24e profits are expected to exceed the required cost of equity. We use a discount rate of 10.9% and a perpetual growth rate of 3%. The key upside risks to our valuation are (1) lower-thanexpected provisioning costs and (2) better efficiency metrics.
Country :
Report Type :
Special Edition
Report Date :
Monday, August 10, 2020
Provided by :
Report Size :
1309


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