Analysts at Canaccord Genuity upgraded their recommendation for stock of International Personal Finance to ‘buy’, on the back of recent news-flow pointing to a reduced risk that a “financially-damaging” rate cap might be imposed in its largest market, Poland.
They also revised their target price for the shares higher from 160.0p to 191.0p.
Indeed, a temporary rate cap implemented in the wake of the pandemic was due to lapse on 30 June and the country’s Minister of Justice had publicly hinted that Warsaw’s goals had been met.
They also judged that the fragmented parliament meant that the hurdles to passing new laws were significant.
On the flip-side, they conceded that “we are nonetheless cognizant that this is finely balanced, as potential instability presents the risk of rapid change.”
In Hungary on the other hand, a temporary debt repayment moratorium was extended on 30 September and may yet be prolonged further.
“Overall, while ever-present, we believe that the regulatory threats in IPF’s territories are currently less intense than they have previously been.
“We continue to believe it’s appropriate to assign a risk premium in our valuation approach for regulatory challenges, but for now, at a reduced level. We upgrade IPF to BUY from Speculative BUY.”
