SSIF Broker cut its target price on BRD to 13.5 lei (EUR3.2) a share, from RON13.79 a share previously, while keeping its recommendation to ‘hold.’
However, the brokerage firm estimates a 22% increase in BRD’s profit to RON615 million (EUR145 million) in 2011, saying it expects risk provisions to drop by around one third on the year.
SSIF Broker also reduced its target price on Banca Transilvania to RON1.37 (EUR0.32) a share, from RON1.5 a share previously. The broker left its recommendation unchanged at ‘buy.’
Banca Transilvania’s net profit is estimated to increase 63% on the year to RON160 million (EUR37.7 million), SSIF Broker said.
Tuesday in Bucharest, BRD traded down 1.45% at RON13.59, while Banca Transilvania was down 1.6% at RON1.163. (EUR1=RON4.2356)