Bloomberg News

Pekao Gains Most in 3 Weeks as Value Lures Buyers: Warsaw Mover

June 26, 2012

Bank Pekao SA (PEO), Poland’s second- biggest lender, climbed the most in three weeks, snapping its longest losing streak in more than five months that left it trading at a discount to domestic banks.

The shares rose 3.3 percent to 146.2 zloty at 4:36 p.m. in Warsaw, the biggest increase since June 6. Pekao, 59 percent owned by UniCredit SpA, Italy’s largest bank, trades 12.9 times trailing 12-month earnings, below the average of 14.1 for its local peers, according to data compiled by Bloomberg.

“Pekao’s valuation has slipped relative to other domestic banks in recent weeks,” Tomasz Bursa, an analyst at Ipopema Securities SA in Warsaw, said by phone today. “That makes it attractive, especially to foreign buyers.” Ipopema rates Pekao a buy with a 12-month target price of 148 zloty.

PKO Bank Polski SA (PKO), the biggest Polish bank, gained the most in a week as its shares advanced 2.2 percent to 33.78 zloty. The price-earnings ratio for state-controlled PKO is 10.7, lower than Pekao’s.

To contact the reporter on this story: David McQuaid in Warsaw at dmcquaid1@bloomberg.net

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


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