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ACB [BUY +28.6%] - Valuation appealing, potential to match peers on fees - Update

Company Research

15 Nov 2018

We make no significant amendment to our earnings forecast for ACB in FY2018 and FY2019 and maintain our expectations on net-interest margins (NIMs) and non-interest income (NOII). We cut our target price (TP) by 9% mainly due to a 50-bp upward revision in our cost of equity and a 12% reduction in our peer target multiple. Our rating on ACB, however, is revised from OUTPERFORM to BUY as a 14% decrease in stock price in the last three months grants a potential upside of 28.6% to our new TP.
Tags: ACB

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