Global investment bank Goldman Sachs has updated its target prices and recommendations for several leading Turkish banks, including Akbank, Garanti BBVA, Türkiye İş Bankası, and Yapı Kredi, reflecting changing expectations for Turkey’s banking sector amid persistent high interest rates and evolving macroeconomic conditions.
According to the latest research report, Goldman Sachs maintained its “Buy” recommendation for Akbank, Yapı Kredi, and İş Bankası, while keeping a “Neutral” stance on Garanti BBVA. The bank said Turkish lenders still offer significant long-term revaluation potential despite recent market volatility and tighter monetary conditions.
Goldman Sachs revised several target prices as part of the update. The institution lowered Akbank’s 12-month target price from 105 Turkish lira to 93 lira, while Yapı Kredi’s target price was reduced from 53 lira to 48 lira. Analysts attributed the revisions mainly to expectations that high interest rates will remain in place longer than previously forecast, placing pressure on net interest margins and profitability.
Despite the downward revisions, Goldman Sachs emphasized that both Akbank and Yapı Kredi continue to present upside potential based on current market valuations. The bank highlighted expectations for stronger profitability in the medium term, supported by operational efficiency improvements and potential margin expansion once monetary conditions begin to ease.
The report also upgraded İş Bankası from “Neutral” to “Buy,” citing its balance-sheet structure, relatively attractive valuation, and potential improvement in return on equity over the coming years. Goldman Sachs noted that İş Bankası could benefit more significantly from a future decline in interest rates compared with some peers.
For Garanti BBVA, Goldman Sachs maintained its “Neutral” recommendation, stating that the bank’s strong recent profitability performance limits additional upside compared with rival lenders. However, analysts continued to praise Garanti BBVA’s resilient balance sheet and management quality.
The investment bank also said Turkey’s ongoing disinflation process and expected future rate-cut cycle could create favorable conditions for the banking sector over the longer term. Goldman Sachs estimated that Turkish banks may experience improving net interest margins and stronger earnings growth between 2026 and 2028 if macroeconomic stability continues to improve.
Source: Patronlar Dünyası/ Prepared by: İlayda Gök