28 March 2025, Signet, one off the leading Latvian investment banks, has initiated sponsored research of AB Šiauliu Bankas and published the initiation of coverage report. Analysis suggests a target price of EUR 1.27, which represents a compelling 35% upside potential over the bank's current market valuation (EUR 0.94).
Šiauliu Bankas demonstrated robust loan portfolio expansion, recording a 5Y CAGR of 15%, while deposits have grown at an annual rate of 12%, outpacing broader market. The Bank has maintained a disciplined approach to cost control and delivered above-industry ROE in recent years.
Šiauliu Bankas' strong share price performance (+36% YTD) reflects solid investor confidence in Bank's strategic development. However, the stock still trades at a notable discount of 30% on P/B basis, and 19% on P/E basis relative to peer averages, essentially deserving higher valuation with 14% ROE.
Looking ahead Signet analysts forecast the Bank to sustain attractive dividend yield within the 5.3% - 9.2% range over the 2025 - 2029 estimated horizon (5.6% in 2024), reinforcing its commitment to disciplined capital deployment and shareholder value maximization.
Based on Signet analyst's estimates and key assumptions, Šiauliu Bankas equity is valued at EUR 1.27 per share, implying a 35% upside to the current market price (EUR 0.94).
Signet Bank is one of the first banks of independent Latvia. The Bank has focused its strategy on servicing entrepreneurs and their companies, with an emphasis on high-quality capital management and structuring investment projects.
Šiauliu Bankas is also covered by IPOPEMA, Enlight Research, Erste Group, Norne Securities, Swedbank and WOOD & Company. The analysts' evaluations and reports are available to investors on Šiauliu Bankas' website.
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Important Notice:
Signet Bank reports are prepared on behalf of Šiauliu Bankas and based on publicly available information. Reports are published for informational purposes only and do not constitute, and shall not be deemed to constitute, an investment recommendation to buy, sell or enter into any other transactions in respect of the shares of Šiauliu Bankas. The information provided may not form the basis of any subsequent transaction. Investors themselves are responsible for making investment decisions based on the information published.
Additional information:
Tomas Varenbergas
Head of Investment Management Division
tomas.varenbergas@sb.lt
