In a new report released yesterday, Patria downgraded its key long-term recommendation for KB from buy to hold and downgraded its short-term recommendation from buy to reduce. End-2002 target price was raised to CZK 1,980 (previously CZK 1,360).
Strong expected EPS growth and declining risks related to the bank’s asset portfolio favor KB stock. However, after the recent stock-price gains, which in part reflect the high expectations related to KB’s future performance, the stock now trades with only a very limited growth potential to our revised 6-12M target price.
(Jan Hajek)