Wednesday 12 November 2008

Buy PNB, target of Rs 540: Emkay Global

Emkay Global Financial Services has upgraded its rating on Punjab National Bank (PNB) to buy with a target of Rs 540 in its November 3, 2008 research report. "Punjab National (PNB) has reported a net profit of Rs 7.1 billion. The NII, at Rs 17.1 billion, is up 32.6% yoy driven by 28.5% yoy growth in advances and 25bps expansion in NIMs. The stock is currently quoting at 4.8x FY10E EPS and 0.9x FY10E ABV, which looks attractive."

"In our result note for Q1FY09, where we changed our recommendation on the stock to HOLD, we had mentioned that better NIMs and further improvement in the non-performing assets could be triggers for upgrading our recommendation and price target on the stock. With both the events happening we are upgrading the stock to a BUY with price target of Rs 540," says Emkay Global Financial Services' research report.

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Source: Moneycontrol

Posted by Harsh at 09:31

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