BID [O-PF +17.3%] - Recapitalization could boost valuations - Update
We raise our TP for BID from VND24,678 to VND26,100 (+5.8% upgrade), which offers a total return of +17.3%, and change our rating from BUY to OUTPERFORM. With strong core business performance and decent provisioning to resolve legacy issues, we continue to believe in a turnaround story for BID operations. We maintain our current forecast loan growth for 2017 at 18%. Our cumulative 2016-2019F loan and deposit CAGR are 16% (downgrade of -1 ppt) and 14% (downgrade of -3 ppts).