We downgrade our stance on Pakistan banks to Marketweight following the acute impact of Covid-19 on the sector
The central bank acted quickly to protect borrowers, but stress seems unavoidable; cut our CY 20f EPS by 23%, TP by 24%
We prefer large banks due to less reliance on spread income, conservative loan books and defendable cash payouts
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The analyst certifies that the views expressed in the report reflect their personal views about the subject securities. He or she also certifies that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendations made in this report. He or she further certifies that they do not have any beneficial holding of the specific securities that they have recommendations on in this report.
Valuation Methodology: We use multiple valuation methodologies in arriving at a Target Price including, but not limited to, Discounted Cash Flow (DCF), Dividend Discount Model (DDM) and relative multiples based valuations.
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