07:00 AM EDT, 08/27/2026 (MT Newswires) -- BofA Global Research is optimistic on Emirates NBD Bank (DFM:EMIRATESNBD), saying the United Arab Emirates-based lender's prospects for growth and return on equity remain "underappreciated" by the market. "Emirates NBD (ENBD) is one of our '10 Emerging stocks for 2026' and it is on the Emerging EMEA 1 list of top ideas. It remains a compelling large-cap MENA bank into year-end 2027E, supported by strong loan growth (+17% in 2026E excluding RBL), improving fees and more meaningful international diversification through India. Yet the stock still trades at a c.29% P/BV discount to UAE peers, despite a structurally better earnings mix than in previous cycles," analysts said Wednesday. "In our view, historical concerns about Türkiye macro volatility, Dubai sovereign exposure and the possibility of value-dilutive M&A have not disappeared, but they are more quantifiable. Dubai sovereign loans are only 7% of gross loans, while RBL consolidation reduces the likelihood of another very large acquisition in the near term." Taking these into account, the research firm raised its price objective to 38.50 Emirati dirhams from 37.60 dirhams while retaining the stock's buy rating, amid expectations of a 16.6% average return on equity over the 2026 to 2028 period. EPS estimates for 2026 through 2028 were also increased by between 1.1% and 5.5%, mainly driven by net interest margin and cost of risk forecast revisions.

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