Sept. 29 (Bloomberg) -- Turkish banks had their price estimates cut at BofA Merrill Lynch, which said recent outperformance means investors should be “more selective.”
Merrill cut Turkiye Vakiflar Bankasi TAO to “neutral” from “buy” and lowered its price estimates for five other banks including Turkiye Garanti Bankasi AS and Turkiye Is Bankasi AS, according to an e-mailed report today.
“The banks are still attractive to us but the recent outperformance calls for us to be more selective,” Merrill analyst Ecem Nalbantgil said from London. “We believe Turkish banks have shifted gears and have positioned for a slower growth environment. The measured pace is not only healthy but offers better margins as well.”
Merrill cut the estimate for Garanti to 8.9 liras per share from 9.1 liras and for Isbank to 6.1 liras per share from 6.4 liras.
Earnings are likely to grow an average 12 percent in 2012 after no growth this year, Merrill said. The expansion in loans will probably be 18 percent next year, “mostly back ended,” down from a previous estimate of 22 percent, Merrill said.
Akbank TAS’s estimate was lowered to 7.4 liras from 7.5 liras and the estimate of Asya Katilim Bankasi AS, an Islamic lender, cut to 2 liras from 2.1 liras. Estimates for Yapi & Kredi Bankasi AS and Turkiye Halk Bankasi AS were left unchanged, it said.
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