– BGEO is a London-listed leading retail and commercial bank in the country of Georgia.
– The bank operates in an attractive duopoly market with strong and improving country-level fundamentals.
– Should benefit from the recent influx of Russian immigrants.
– BGEO trades at just 1x book value and 4x earnings whilst continuing to return capital through buybacks and dividends.
– Its Western-trained management is excellent and has been able to return consistent 20%+ ROEs over the last 15 years.
– At a ~6x P/E or ~1.5x P/B 2025 exit multiple, combined with £6/shr of cum. dividends, stock is expected to trade at £80 /shr.
– This would result in a 200% upside.
Exp. gain: 200%
Full write-up (free guest account required):
Bank of Georgia Group (BGEO.L), mcap=$1303m