Erste Cuts Romanian Proprietatea Fund Target Price To RON0.51/Share
Austria’s Erste Group Bank Tuesday cut by 29% to 0.51 lei (EUR0.117) a share its 12-month target price on Romanian investment fund Fondul Proprietatea (FP.RO), while keeping its recommendation unchanged at “accumulate.”
The new target price is 19% higher compared with the fund’s latest market price of RON0.43 a share.
“We maintain our accumulate rating for Fondul Proprietatea shares, while adjusting the target price from the previous RON0.72 to RON0.51. This was arrived at after applying a 48% discount to the Fair Net Asset Value/share of RON0.98 derived from our conservative SOTP methodology,” Erste said in a report.
It said the decision regarding the fair discount for the fund’s shares considered the real liquidity in Fondul Proprietatea’s portfolio, which is “much weaker compared with that of a private equity fund.”
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