KBCSF - KBC Group: Few Surprises In Recent Results
2024-02-11 23:52:43 ET
Summary
- Beaten down following Russia's invasion of Ukraine, KBC Group has done well since initial coverage in mid-2022, with the Belgian bank matching the circa 40% return of its peer group.
- While recent results contained few surprises, virtually matching consensus, medium-term guidance implies earnings upside from current estimates.
- These shares still look modestly undervalued, with earnings upside and the bank's rock-solid profitability justifying a higher multiple of tangible book value.
Alongside most of its peers, Belgian bank KBC Group (KBCSY) (KBCSF) had sold off hard when I first covered it with a Buy rating back in mid-2022, with macro fears following the Russian invasion of Ukraine driving the stock below book value and into clear value territory. European financials have staged a strong recovery in that time, with the circa 38% total return posted by KBC's ADSs basically matching peers....
KBC Group: Few Surprises In Recent Results