Pasha Bank IPO - Initiating Coverage

TP: AZN 54.24 (adjusted upside of 12.8%)

Investor Club Research initiates coverage of Pasha Bank OJSC with a 12-month price target of AZN 54.24. While the stock appears fairly valued at the IPO price of AZN 55, the entry calculus shifts materially on a post-dividend basis: management has guided a 2025 dividend of AZN 129mn (AZN 6.91/share), implying a 12.6% cash yield within weeks of settlement and reducing the effective cost basis to AZN 48.09 — a 12.8% upside to our price target.

The bank is Azerbaijan’s #3 institution by assets and leader in corporate banking - S&P BB-/Positive, Tier 1 CAR of ~19%, and a strong balance sheet with significant untapped lending capacity. The bull case rests on deployment of excess liquidity, a SME digital expansion via the RM Lab platform, and a structural C/I improvement from ~48% toward 43%.

Full report is attached and also available on our Substack 👇 🔗 invesclubx.substack.com

Investorclub Pashabank Initiation April2026

4.3MB ∙ PDF file

Download

Our mission is to keep you informed about critical news events, prioritize financial education, and build your investing confidence—so you can make smarter decisions in rapidly evolving markets.