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Sunday, October 29 2006 @ 08:01 AM Central Standard Time
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Turkish stocks are worth buying because they are cheap and earnings growth will accelerate, according Citigroup Inc.
The Citigroup strategists raised their recommendation on Turkish shares to 'overweight' from 'neutral,' according to the note. Turkiye Garanti Bankasi AS and Turkiye Is Bankasi AS were added to the bank's focus list because they are likely to benefit from a drop in global bond yields.
"Valuations are among the most attractive in the emerging world," strategists Andrew Howell and Geoffrey Dennis wrote in a report to clients. Earnings growth forecasts "look relatively healthy compared with many markets."
Higher U.S. rates make returns on riskier assets in developing countries less attractive. The U.S. central bank has left rates unchanged at its last three meetings, following a two-year run of 17 straight increases.
Profit growth for Turkish company will reach 26 percent next year, up from 13 percent this year, according to Citigroup estimates. |
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