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BURG: Upcoming Capital Increase Will Support Stronger Prospects And Share Price Upside

UGB Acquisition and Digitalization Will Sharpen Position Despite Margin Pressures Ahead

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BURG
AnalystConsensusTarget
Not Invested
Published 24 Feb 2025

Update shared on 11 Dec 2025

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AnalystConsensusTarget's Fair Value
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1Y
24.5%
7D
-0.4%

Analysts have slightly reduced their price target on Burgan Bank K.P.S.C., trimming it by a marginal amount in Kuwaiti dinar terms as they fine tune assumptions around discount rates, revenue growth, profit margins, and future price to earnings expectations, while maintaining a broadly unchanged view of fair value.

What's in the News

  • Burgan Bank has scheduled a board meeting for October 16, 2025, to consider and approve financial results for the period ended September 30, 2025 (company event filing).
  • The bank will hold a special or extraordinary shareholders meeting on November 15, 2025, in Kuwait City to vote on increasing authorized capital, approving share premiums on future capital increases, and addressing other matters (company event filing).

Valuation Changes

  • Fair Value: Unchanged at KWD 0.257 per share, indicating no revision to the central valuation estimate.
  • Discount Rate: Edged down slightly from 20.64 percent to 20.64 percent, reflecting a marginally lower perceived risk profile.
  • Revenue Growth: Effectively unchanged at around 17.63 percent, suggesting stable expectations for top line expansion.
  • Net Profit Margin: Remains broadly steady at approximately 28.44 percent, with only immaterial model refinements.
  • Future P/E: Nudged down slightly from 18.59x to 18.59x, implying a marginally lower multiple applied to forward earnings.

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Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.