Yapi Kredi Advances After Being Named Top Pick: Istanbul Mover

Yapi & Kredi Bankasi AS, a Turkish bank part-owned by UniCredit SpA, rose for a second day after VTB Capital Plc and JPMorgan Chase & Co. named the stock among their top picks.

Yapi & Kredi climbed 0.8 percent to 5.24 liras at close in Istanbul. The number of shares traded was 119 percent of the stock’s three-month average daily volume. The Istanbul Stock Exchange National 100 Index retreated 0.3 percent to 80,054.41, falling for a second day.

The lender is “the best positioned bank” for earnings-per-share growth this year, given its low dependence on lira securities, interest income and trading gains, Akin Tuzun, a London-based analyst at VTB Capital, said in a report today.

Yapi & Kredi hired Deutsche Bank AG, UniCredit Bank Austria AG and Yapi Kredi Yatirim Menkul Degerler AS to advise on the sale of its insurance unit Yapi Kredi Sigorta AS, according to a July 27 statement. The bank is still assessing “strategic alternatives”, it said in a statement to the Istanbul Stock Exchange on Jan. 10.

A successful sale would “lock in profits, raise cash and, more importantly, increase capital adequacy,” Tuzun said.

Yapi & Kredi was also named among “top 10 stock picks” in the CEEMEA region in a research report by JPMorgan Cazenove analysts David Aserkoff and Saharsh Kumar. The analysts recommended an overweight position for Yapi & Kredi, with a price target of 5.7 liras, according to the report.

VTB’s Tuzun has a hold recommendation on the stock, with a price target of 5.7 liras.