Bloomberg News

OTP Bank Price Estimate Cut at JPMorgan on Slowing Economy, Tax

September 28, 2011

Sept. 28 (Bloomberg) -- OTP Bank Nyrt., Hungary’s largest lender, had its share price estimate cut by 35 percent at JPMorgan Cazenove because of slowing economic growth in Hungary, the costs of foreign-currency loans and a tax on banks.

JPMorgan cut the price estimate for the end of 2012 to 4,400 forint from 6,800 forint, keeping its recommendation at “overweight,” according to a research report by analysts including Paul Formanko in London.

The shares rose 1.1 percent to 3,295 forint at 9:32 a.m. in Budapest, a third day of gains and paring its loss this month to 21 percent.

“The battle to revive domestic profit growth is likely to continue,” the JPMorgan analysts wrote. “For longer-term value investors over 12 months we believe current share price weakness offers an attractive entry.”

--Editors: Wojciech Moskwa, Linda Shen

To contact the reporter on this story: Andras Gergely in Budapest at agergely@bloomberg.net

To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net


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