2024-07-05 23:49:39 ET
Summary
- Actions like targeting higher ROE, diversifying geographically, and increasing capital distribution could lead to a positive re-rating of Shinhan Financial's shares and valuations.
- SHG's year-to-date share price underperformance relative to its key peer was influenced by significant stake sales, but this is likely to be less of an issue going forward.
- My rating for Shinhan Financial is upgraded to a Buy, as I think that the stock has the potential to trade at higher valuation multiples.
Elevator Pitch
Shinhan Financial Group Co., Ltd. ( SHG ) [055550:KS] is now rated as a Buy.
My prior October 6, 2023 update touched on the key issues related to Shinhan Financial such as "capital adequacy, capital return, digitalization, and competitive dynamics."...
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Shinhan Financial Has Valuation Re-Rating Potential (Rating Upgrade)