10 Stock Ideas From Eastern Europe, Middle East And Africa
• Bank of America just released its new list of 10 top EEMEA stock ideas.
• Buy ideas include Barclays Africa, Erste and Netcare.
• Sell ideas include Evraz, Guinness Nigeria and VTB.
In a new report, Bank of America analyst John Morris lists the form’s top 10 Eastern Europe, Middle East and Africa (EEMEA) stock ideas. Here’s a breakdown of the list for international investors:
1. Buy: Barclays Africa Group
Morris sees deposit growth, new systems and continued cost savings boosting earnings prospects.
2. Buy: Erste Bank
Morris sees attractive exposure to recovery in Central and Eastern Europe.
3. Buy: Netcare
Netcare has underperformed the South Africa market despite being the only hospital in the region not to endure earnings downgrades back in May.
4. Buy: SAMBA
Morris sees SAMBA as well-positioned to capitalize on rising U.S. interest rates and Saudi debt issuance.
5. Buy: Turkish Airlines
Morris is projecting 11 percent CAGR in traffic and 20 percent CAGR in EBITDAR from 2014 to 2017.
6. Buy: Ulker
Morris believes Ulker is in position for earnings recovery this year on strong margins, innovation, and growth normalization.
7. Buy: X5 Retail Group
Morris sees upgrades ahead for X5, as six consecutive quarters of improvements suggest that a turnaround is underway.
8. Sell: Evraz
The company’s focus on long steel exposes it to too much risk from weak construction and fierce competition.
9. Sell: Guinness Nigeria
Morris believes that the stock is overvalued trading at about 34x 2016 estimated earnings.
10. Sell: VTB
Morris does not feel that the recovery in VTB's business has been strong enough to justify the stock’s premium valuation.
Disclosure: the author holds no position in the stocks mentioned.
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