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ADCB: Profit Margins Will Drive Forward Earnings After Share Capital Increase

AI Transformation And Capital Raise Will Drive Profitable Expansion Ahead

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ADCB
AnalystConsensusTarget
Not Invested
Published 02 Feb 2025

Update shared on 07 Nov 2025

Fair value Increased 6.14%
Previous
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AnalystConsensusTarget's Fair Value
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1Y
46.5%
7D
-3.5%

Analysts have raised their price target for Abu Dhabi Commercial Bank PJSC from AED 16.74 to AED 17.76. They cite improved profit margins and incremental adjustments to financial forecasts as key drivers for the revision.

What's in the News

  • Board meeting scheduled for October 27, 2025, will review financial results as of September 30, 2025, and the latest updates on the bank's AI transformation strategy (Board Meeting).
  • General Assembly on October 13, 2025, approved an amendment to Article 6 of the Articles of Association to reflect a share capital increase (Changes in Company Bylaws/Rules).
  • Special/Extraordinary Shareholders Meeting held on October 13, 2025 (Special/Extraordinary Shareholders Meeting).
  • Follow-on equity offering filed for AED 6.1 billion, offering over 592 million ordinary shares at AED 10.3 per share under Regulation S and as a rights offering (Follow-on Equity Offerings).
  • Board meeting on September 8, 2025, reviewed strategic progress and other general business (Board Meeting).

Valuation Changes

  • The Fair Value estimate has increased from AED 16.74 to AED 17.76, reflecting a moderate rise.
  • The Discount Rate has edged down slightly from 20.39% to 20.33%.
  • The Revenue Growth forecast decreased marginally from 14.97% to 14.82%.
  • The Net Profit Margin has improved, rising from 51.14% to 52.59%.
  • The future P/E ratio forecast decreased slightly from 15.47x to 15.35x.

Disclaimer

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