Research Tactical Idea
We believe the share price will rise relative to the country index over the next 45 days.
We expect BOI to sustain the material improvement reported in the previous quarter's numbers. Net interest margins will
likely expand slightly on a sequential basis. This, coupled with continued cost control, will help drive robust core-pre
provision profit growth, in our view. Asset quality trends are expected to be stable on a QoQ basis. Despite the recent rise,
we believe valuations continue to remain attractive at 6.7x F2012e earnings, 1.4x BV and 4.0x PPP.
We estimate that there is about a 60% to 70% or "likely" probability for the scenario.
Estimated probabilities are illustrative and assigned subjectively based on our assessment of the likelihood of the
scenario.
Stock Rating: Overweight
Industry View: In-Line
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