The Point for CEEMEA

Research evidence excerpt

The Point for CEEMEA

Point |

Monday, 22 June 2026

Top Call | MENA | South Africa | Emerging Europe | Sector | Strategy & Economics | Key Rating and

Target Price Changes

Top Call Must Read

Pepco Group NV (PCOP.WA) - Turnaround Progress Supports Upgrade to Buy Emerging Markets Economic Outlook

We upgrade Pepco to Buy from Neutral and raise our TP to ZL 40 from ZL 31. The & Strategy - Global Imbalances – EM’s

1H26 profit was +6%/+17% vs VA/Citi forecast and along with the latest Role and Policy Responses

comments from management, this confirms a turning point in the business, in our

view. The company is moving from a period of restructuring the business to a

period of more focused growth that is supported by improving margins and a

policy that returns more cash to shareholders. The improved financial targets for

2026, a plan for faster growth in Western Europe, and a €400m share buyback are

all positive drivers for the stock. We believe the current share price does not fully

reflect this better outlook, presenting a compelling investment opportunity.

Rafal Wiatr, CFA

MENA

Riyad Bank (1010.SE) - Model Update

We update our model with changes to 2026-29E forecasts based on the ongoing

operating trends. Our 2026-29E attributable profit forecasts have increased by 1-

2% to reflect c.0-1% higher revenue, lower OpEx and lower 2026-27E provisions

partly offset by higher provisions in 2028-29E. We also increase our CoE by 25 bps

to 11.25% to account for concerns around capital and SME business mix.

Nonetheless, our TP of SAR 27.7/share is unchanged. We maintain our Buy rating

on the stock. Riyad Bk remains our top pick in the Saudi banks space.

Rahul Bajaj, CFA

Saudi Awwal Bank (1060.SE) - Model Update

operating trends. While our 2026-27E attributable profit forecasts have not