From Zawya Dow Jones: Rasmala initiatives coverage of the U.A.E. banking sector, says banks are undervalued and the sector has already priced in balance sheet risks and concerns over Dubai Inc. restructuring.
“We believe current valuations reflect continued dire expectations for Dubai, with elevated provisioning for an indefinite period and with a fundamentally broken business model. We do not agree with this outlook,” Rasmala says. Adds “returns for the sector are set to recover strongly once provisioning settles down” though growth looks elusive……………………………………….Full Article: Source