Lion Finance Group PLC (LSE:BGEO) may not yet roar on UK screens, but JP Morgan thinks it deserves a louder following.
The US bank has begun coverage with an “overweight” rating and a December 2026 price target of £92, calling it a “structural emerging markets growth story” and an “Apex compounder”.
Formerly known as Bank of Georgia, the group has built commanding positions in Georgia and Armenia, two fast-growing, increasingly consolidated banking markets.
JPM expects earnings per share to rise by 12% a year between 2024 and 2027, fuelled by loan and deposit growth that should deliver a 13% annual increase in net interest income, among the fastest in the sector.
Scale is the main edge. A cost-to-income ratio of about 35% puts Lion among the most efficient banks in emerging Europe, while a strong digital offering keeps costs in check and helps sustain an average adjusted return on equity of around 25% over the next three years, comfortably above its medium-term goal of more than 20%.
The stock, up about 60% so far this year, still trades at just five times 2027 forecast earnings and 1.1 times tangible book value, below its pre-pandemic averages.
JPM sees room for further re-rating if geopolitical risk premiums ease, particularly around Georgia’s proximity to Russia and the broader region’s political tensions.
For now, Lion looks to be one of the quieter but more consistent emerging market growth stories in London’s mid-cap ranks.
The shares were up 1% at 7,724.89p.