Freedom Broker forecasts price of Kaspi.kz securities to rise by a third

According to analysts of Freedom Broker, which monitors the price of Kaspi.kz global depository receipts traded on the LSE, the security’s price is going to rise by 31%.

The forecast is based on a quarterly report by Kaspi.kz published earlier this week. Freedom Broker has described this report as moderately positive. Over the first nine months of 2023, the company increased its revenue by 50% to $1.2 billion. In Q3, the company reported a 40% growth in revenue ($485.9 million).

These results even surpassed the expectations of the group itself. However, macroeconomic conditions and the exchange rate between the USD and the tenge in particular, have put pressure on the security’s price nominated in the U.S. dollar, analysts noted. Thus, the target price of the GDP is set at $121 (currently it is traded at $92.5) with the recommendation to buy.

Analysts warned that failure to meet the growth forecast, deterioration of the quality of the group’s loan portfolio and further weakening of the tenge exchange rate toward the dollar can easily affect the Kaspi.kz security price.

On October 25, the cost of Kaspi.kz GDR on the LSE stayed the same ($92.5), although on Tuesday it grew by 0.1%. On the other hand, the company’s shares are traded today at $94.42 on KASE, which is $0.25 or 0.26% lower than it was during the trading session on October 24.