POLI: Share Repurchase Plan Will Support Capital Management Amid Steady Earnings Outlook

Analysts have modestly raised their price target on Bank Hapoalim B.M. from $71.55 to $74.78. This reflects updated assumptions for a slightly higher discount rate, somewhat lower long term revenue growth and profit margin, and a richer future earnings multiple.

What's in the News

• The Board of Directors authorizes a new share repurchase plan, signaling continued confidence in Bank Hapoalim B.M.'s capital position and earnings outlook (company announcement).
• Bank Hapoalim B.M. launches a share repurchase program of up to ILS 1,000 million, aimed at managing capital more efficiently and potentially enhancing shareholder returns, with authorization valid through November 5, 2026 (company announcement).

Valuation Changes

• The fair value estimate has risen slightly from $71.55 to $74.78 per share, indicating a modestly higher intrinsic value assessment.
• The discount rate has increased from 9.48% to about 10.17%, reflecting a somewhat higher required return and risk premium in the valuation model.
• Revenue growth has been revised down slightly from roughly 6.30% to about 5.55% per year, implying more conservative long term top line expectations.
• The net profit margin has edged down from about 40.12% to roughly 38.73%, signaling a modestly lower long term profitability assumption.
• The future P/E multiple has risen from about 11.32x to approximately 12.28x, suggesting an expectation of a somewhat richer valuation for future earnings.