Nomura Securities Upgrades ING Groep NV (ING) to Buy; Strong Bank Operating in More Resilient Eurozone Economies
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Price: $35.70 +0.28%
Rating Summary:
8 Buy, 7 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
8 Buy, 7 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Nomura Securities (assumes coverage and) upgrades ING Groep NV (NYSE: ING) from Neutral to Buy, raises price target from EUR9.5 to EUR9.8.
Analyst Tarik El Mejjad, said, "The company’s investment case is geared to the bank’s ability to implement the European Commission restructuring plan (principally separate the insurance businesses and bank), pay back the Dutch state securities and meet the Basel 3 CT1 requirement of at least 10% by 2013. In our base-case scenario, ING reaches a 2013E fully-loaded Basel 3 CT1 of 10.6%. Given the defensive nature of the bank (sustainable ROTE of 10-11%), we regard the bank’s implied valuation (assuming the insurance business is divested at 0.7x P/NPV) of 0.7x ‘13E P/TBV and 7.1x ‘13E, which is in line with the EU17 large-cap average, as attractive for a northern eurozone national champion. Going forward, more progress in a well-advanced restructuring process should reduce execution risk perception and unlock value with the key catalysts being the sale of the Asia Insurance business this year and the US Insurance business next year."
For an analyst ratings summary and ratings history on ING Groep NV click here. For more ratings news on ING Groep NV click here.
Shares of ING Groep NV closed at $9.21 yesterday.
Analyst Tarik El Mejjad, said, "The company’s investment case is geared to the bank’s ability to implement the European Commission restructuring plan (principally separate the insurance businesses and bank), pay back the Dutch state securities and meet the Basel 3 CT1 requirement of at least 10% by 2013. In our base-case scenario, ING reaches a 2013E fully-loaded Basel 3 CT1 of 10.6%. Given the defensive nature of the bank (sustainable ROTE of 10-11%), we regard the bank’s implied valuation (assuming the insurance business is divested at 0.7x P/NPV) of 0.7x ‘13E P/TBV and 7.1x ‘13E, which is in line with the EU17 large-cap average, as attractive for a northern eurozone national champion. Going forward, more progress in a well-advanced restructuring process should reduce execution risk perception and unlock value with the key catalysts being the sale of the Asia Insurance business this year and the US Insurance business next year."
For an analyst ratings summary and ratings history on ING Groep NV click here. For more ratings news on ING Groep NV click here.
Shares of ING Groep NV closed at $9.21 yesterday.
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