Recommendations of Millenium Capital for Ukrgasbank from “Accumulate” to “Hold”
Analysts of investment company Millenium Capital changed the recommendation regarding Ukrgasbank shares (ticker UGZB) from “Accumulate” to “Hold”.
The recommendations of the investment company Millenium Capital (http://www.mcapital.com.ua)
In addition, analysts of the company assert that ROE (return on equity; net profit/equity amount) of Ukrgasbank increased from 8.9% in 2006 to 14.1% based on the results of six months of 2007. Assessment of the investment company, contemplating the increase of ROE to reach the average European level of about 17% within the forthcoming five years, shows that price for Ukrgasbank shares has exhausted its potential of considerable growth in the short-term outlook. A new targeted price is USD 1.57. Taking into account the additional placement of shares to take place from 3 September to 5 October, the targeted price will make up USD 1.38, a 1% growth against the average price of USD 1.37.
Gleb Kabalnov, a leading analyst of Arta Investment Partners company, recommends buying shares of Ukrgasbank until their price has reached UAH 8 (USD 1.58). “The bank has good financial performance rates for the first half of 2007. Ukrgasbank is one of a few Ukrainian banks that have sufficient quantity of shares in free circulation”
Anastasiya Nazarenko, a broker of Concorde Capital investment company, considers that shares of Ukrgasbank are to be sold now since its securities are overrated as compared to shares of Ukrsotsbank and Raiffeisen Bank Aval which have higher liquidity. “But generally speaking, the bank’s shares are interesting since the bank has high standards of corporate culture”, the broker says. “Ukrgasbank is large and has not yet been acquired by a strategic investor. That means one can expect a share game at the stock exchange during merges and acquisitions.”