The Asset Accumulator - Initiate at Buy

研报英文原文证据摘录

The Asset Accumulator - Initiate at Buy

Israel | Insurance

Menora Holdings EquityJulyResearch9, 2026

INITIATING COVERAGEThe Asset Accumulator - Initiate at Buy

Despite producing market leading profitability, Menora trades at a discount RATING BUY

to its adjusted book value while its peers trade at a considerable premium. PRICE ILS460.00^

In our view, the value of Menora's market leading, structurally high growth, PRICE TARGET | % TO PT ILS565.00 | +23%

high margin, and capital-light Pension and Provident Funds businesses are 52W HIGH-LOW ILS574.00 - ILS270.00

not fully appreciated. We initiate with a Buy recommendation and NIS 565 FLOAT (%) | ADV MM (USD) 34.7% | 45.03

Price Target. MARKET CAP ILS28.7B | ILS28.7B

TICKER MMHD IT

Market Leading Profitability - Although Menora is Israel's 5th largest insurer by book value, ^Prior trading day's closing price unless otherwise noted.

the group is the 3rd largest by net income, as a result of market leading profitability for three

consecutive years. Such success is primarily driven by the group's outsized exposure to the

business lines with the structurally highest growth, high margins, and lowest balance sheet FY (Dec) CHANGE TO JEFe JEF vs CONS

risk - namely Pension Funds, Provident Funds, and Non-Life Insurance. Combined, these lines 2026 2027 2026 2027

make up 38% of earnings, in line with its similarly high growth, high profitability peer, Phoenix REV NA NA NA NA

Financial. Moreover, these lines are far less volatile across the cycle, such that prior to the EPS NA NA NA NA

recent interest rate cycle, they contributed 59% of earnings.

2026 (ILS) Q1A Q2 Q3 Q4 FY

Market Leadership in the Structurally High Growth and Low Risk Pension Fund Industry -

EPS 7.43 8.76 8.92 10.54 35.69