The brokerage house Wood & Company, based in Prague, kept their BUY recommendation on the shares of Romania’s largest bank by assets, Banca Transilvania (TLV), although they estimated a 14% fall by 14% in the next 12 months. 

The dividend yield is expected to remain in the 4%-5% range over the coming three years after the record values of 5.6%-5.7% values in 2022-2023.

The analysts maintained the target price for TLV shares at RON 6.7 given to the shares of TLV, according to a research report published on the BVB Research platform.

“Overall, we see the bank’s 1Q24 results as positive. Despite the core pre-provision profit coming in largely in line with our expectations, we view the resilience of the NIM and the strong loan book expansion as constructive,” the report reads.

The price of TLV shares has risen by approximately 80% y/y and has a market capitalisation of RON 24.7 billion (EUR 5 billion).

iulian@romania-insider.com

(Photo source: Banca Transilvania)