CTG [BUY +23.7%] - Upped credit growth forecast to 2025 lifts CTG's TP - Update
  • 2021-05-10T16:24:31
  • Company Research
We upgrade our rating for CTG from OUTPERFORM to BUY following a 27.7% increase in our target price (TP) to VND54,900/share. Our higher TP is mainly driven by (1) a 7.8% average increase in our projection for 2021-2025F NPAT, (2) our increase in CTG’s target P/B to move its valuation closer to the level of BID, (3) a 50-bp decrease in our in-house cost of equity from 13% previously to 12.5%, and (4) the positive effect from rolling over our TP to mid-2022. Our TP implies a 2021F P/B of 2.06x.