Egypt-based CI Capital has named Abu Dhabi Commercial Bank (ADCB) its top pick among banking shares in the UAE stock exchanges.

“We like ADCB for its strong balance sheet and profitability outlook,” the research firm said, referring to its estimated 2025 price-to-book value (P/BV) of 1.3x compared to 1.7x for average peers.

P/BV compares a company's market value to its book value. It is mostly used by investors to evaluate whether a stock is overvalued or undervalued.

The sustainable return on equity (RoE) stands at 14.7%, according to the brokerage.

Sustainable ROE reflects how efficiently a company can generate profit from its equity while growing at a sustainable rate.

CI Capital said that the lender’s new five-year strategy has not been included in its assumptions, but it will drive further upside to its forecasts and target price.

ADCB, which is listed on the Abu Dhabi Securities Exchange (ADX), has an “overweight” rating with a target price at AED 16 per share.

The brokerage ranked First Abu Dhabi Bank (FAB), listed on ADX, as its second-best pick among the UAE banks, maintaining its “overweight” call and increasing target price by 5.3% to AED 20 per share.

CI Capital maintained its “overweight” ratings on Dubai-listed Dubai Islamic Bank (DIB) and Emirates NBD (ENBD).

“We like DIB for its margin outlook for the year, despite Q1 2025 margin movement coming against our expectations. Meanwhile, ENBD boasts one of the best risk-return profiles in the UAE,” it said.

DIB and ENBD have “overweight” ratings, with target prices at AED 9.40 and AED 27 per share, respectively. 

(Editing by Seban Scaria [email protected])