Beltone Financial is heading to a future view of buying four UAE banks, with a recommendation to buy their shares, with expectations that these banks will benefit from the economic recovery.
According to Arab Net, Beltone, in its first coverage of UAE banks, recommended buying shares of Emirates NBD, Abu Dhabi Islamic Bank, Dubai Islamic and Abu Dhabi Commercial, with a recommendation to sell Abu Dhabi Bank shares. The first with a target price of 16 dirhams per share.
Beltone has set a target price for Emirates NBD share at AED18.8, against a target price for Abu Dhabi Islamic Bank share at AED8.7.
The senior analyst of the banking and financial institutions sector at Beltone Financial, Abanob Magdy, in an interview with Al-Arabiya, expected that there would be a recovery in the profitability of UAE banks during the coming period, supported by the growth Net income from banking operations.
Majdi pointed out that this recovery was not reflected in the current stock prices of the four banks, expecting a recovery in the rate of profitability per share.
He added that the only stock that received a sell recommendation is First Abu Dhabi because it is trading at a very high P/B value, which reflects more than the expected growth in the bank's profits.< /p>
Majdi indicated that the quality of the assets is very satisfactory, after banks made provisions during the past year that increased in value by 60% on an annual basis.
