Strategy Note /
Turkey

Turkey: Earnings growth continues in 2022, helped by high inflation

  • Before earnings seasons, we revised up our 2022 and 2023 estimates and valuations based on our macroeconomic assumptions

  • We revised up our 12-month BIST-100  target to 4,400 from 3,000, indicating an upside of 47%

  • We continue to see a significant upside for selected stocks considering the risks and rewards

Zeynep Erman
Zeynep Erman

Equity Research Analyst

Contributors
Batuhan Ozsahin
Cemal Demirtas
ATA Invest
21 April 2022
Published by

ALERT** ATA INVEST RESEARCH - 1Q22 Earnings Estimates and Valuation Updates -  Attractive valuations for selected blue chip companies. Earnings growth continues in 2022 helped by high inflation.

  •  Ahead of earnings season starting today, we revised up our 2022 and 2023 estimates and valuations based on our macroeconomic assumptions.

    Bottom-up valuation: We revised up our 12-month BIST-100  target to 4,400 from 3,000, indicating an upside of 47%.

    We continue to see a significant upside for selected stocks considering the risks and rewards.

  • We expect 99.4%  earnings growth for our coverage universe in 2022E, following a 139.9% increase in 2021.

  • For non-financials coverage, we foresee 58.8% earnings growth in 2022E, while expecting 157.1% earnings growth for the banks during the same period.

  • Bottom-up valuation: We revised up our 12-month BIST-100  target to 4,400 from 3,000, indicating an upside of 47%.

  • Our top picks: Arcelik, Bimas, Erdemir, Migros, Sisecam, Tav Havalimanları, Turk Telekom.