Goldman Sachs Raises Target Prices for Turkish Banks: Upgrades İş Bankası to 'Buy'

Revaluation Process in the Sector Continues Global investment bank Goldman Sachs indicated in its latest research report on the Turkish banking sector that the revaluation process is set to continue.
The institution, closely followed by international investors, revised its target prices for Turkish bank stocks upward while largely maintaining its positive outlook for the sector.
Macroeconomic Outlook and Profit Forecasts The report emphasized that Turkish banks have experienced significant value gains supported by fourth-quarter 2025 financial results and a constructive macroeconomic outlook, yet they still hold strong potential.
It was noted that the average 12-month forward price-to-book (P/B) ratio in the sector has risen to 1.05x.
Analysts stated that the ongoing disinflation process and the downward interest rate path are particularly favorable for liability-sensitive banks.
This outlook is expected to support net interest margin expansion throughout 2026 and 2027, with earnings per share (EPS) forecasts for the 2026-2028 period increased by an average of 18%.
Bank-Specific Recommendations and Target Price Changes In bank-specific reviews, "Buy" recommendations were maintained for Akbank and Yapı Kredi, while the recommendation for İş Bankası was upgraded from "Neutral" to "Buy." The decision for İş Bankası was attributed to factors such as the bank's high asset-liability maturity gap, the lowest share of CPI-linked securities in the sector, and a low TL loan-to-deposit ratio.
For Garanti BBVA, the "Neutral" recommendation was maintained, with projections suggesting that growth in return on equity may remain limited due to a high base effect.
Updated Target Price List According to the Goldman Sachs report, the new target prices and recommendations for the banks are as follows: Akbank: 105 TL (Previous: 95 TL) – Recommendation: BUY Yapı Kredi: 53 TL (Previous: 46 TL) – Recommendation: BUY İş Bankası (ISCTR): 21 TL (Previous: 15.2 TL) – Recommendation: BUY Garanti BBVA: 173 TL (Previous: 150 TL) – Recommendation: NEUTRAL