Patria on Friday raised its 12M target price for Komercni banka stock to CZK 2,960 (from CZK 2,770) and reiterated its accumulate recommendation; the new target price implies an upside of approx. 16% to the current KB stock price.
Restructuring at Komercni banka has delivered tangible benefits in recent quarters and the bank is on track to deliver its key 2004 financial targets (an ROE of 20% and a cost/income ratio of 50-55%). Also, KB's increased focus on the fast-growing and high-margin retail segment should improve KB's growth profile.
Jan Hájek