Cembra: Strong fundamentals, balanced H1 - DB resumes with "hold"
11/10/2019 07:23
** Deutsche Bank reinstates Cembra Bank CMBN.S with
"hold", citing the Swiss lender's acquisition of consumer
finance company Cashgate and its H1 results urn:newsml:reuters.com:*:nL8N24219P
urn:newsml:reuters.com:*:nFWN24N0X2
** The acquisition makes sense both strategically and
financially as it should allow Cembra to gain market share in
key products and boost earnings per share from 2021, DB says
** According to the broker, Cembra's H1 volume growth
remained stronger than expected, but it recorded an increase in
costs and a slowdown in fees per credit card
** DB says Cembra has strong fundamentals thanks to its
profitability, capital level, recovering growth and easing
margin pressure, but maintains "hold" on valuation grounds
((zuzanna.szymanska@tr.com))