BGEO Group PLC was provided a lift courtesy of a bullish broker circular that followed Monday’s solid third-quarter results statement.
Shares in the owner of the Bank of Georgia responded by posting an 11% rise to £31.19.
The American house Jefferies said the stock is worth £40 as it repeated its ‘buy’ recommendation.
“We remain bullish on BGEO following results after the close yesterday,” said analyst Joseph Dickerson.
“The retail banking led balance sheet growth (loans up 20% year-on-year) is consistent with our thesis and the banking business produced a 25% return on average equity.
“Credit costs were higher than we modelled but we do not see this as particularly price-sensitive.”
The Tbilisi-based bank said profit rose 75% to US$61mln for the three months ended September. Revenues rose just over 6%.
Story by ProactiveInvestors