Thursday, 17 September 2009

PNB an underperformer: Karvy

Karvy Stock Broking has rated Punjab National Bank (PNB) as an underperformer with a target price of Rs 755 in its September 17, 2009 research report.

"We revise our rating on Punjab National Bank (PNB) from 'Market Performer' to 'Under Performer' due to increase in stock price. We have not changed our earning estimates for FY10 and FY11; we expect the bank's net interest income (NII), operating profit and net profit to grow by 18%, 13.5% and 6.5% CAGR during FY09-11. We value the bank on DDM valuation methodology using cost of equity of 13.5%, we determine the bank's fundamental value at Rs 755 at 2.14 x FY11 adjusted book value," says Karvy's research report.

Source: Moneycontrol

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