Patria has lowered its 12-month target price for Komercni banka by 3% to CZK 2,880 to reflect the revised projections, the higher country risk-free rate and the extra dividend to be paid in the coming days. As the stock is trading with a mere 6% discount to the new target price, hold recommendation remained unchanged.
KB’s operating performance over the past several quarters led to the projection revisions moderately downwards having taken a more cautious outlook to KB’s interest income and pricing. Tougher market competition will further weigh on the bank’s interest margins and major fee adjustments are unlikely at the moment.
Jan Hajek