[quote=luxel]This will be achieved in a year. Around feb.-mar 2010when they announce the full year result with profits above kshs.4.5B,coupled with the fact that the stock market will have done a lot of recovery with the index around 4,500 points.[/quote]

man guys are real gurus... i think at this time the market was still at 2,980 points

The time will come within a year when Co-op will be at the same price as Equity bank...

I have a feeling we will have a more interactive debate now that I have compared the two banks with die hard EB supporters coming through

I hope it works for you,the more interest rates drop the faster your dream matures.

Personally i think the share ownership structure of co-op bank gives it more advantage... having few speculative investors makes it posible to even overtake equity.

I am projecting an (optimistic) EPS of 1.34 for Co-op Bank and at a very generous trailing PE of 20 in March 2011, that would take its price to 26.80. I would be surprised if it went beyond a PE of 17 by March 2011, so I am placing a limit on my expectations to Kshs 22.75.

As for Equity, my expected EPS (projection, based on H1 2010 performance) is Kshs 1.63. Again a trailing PE of 20 would take its price to Kshs 32.60 by March 2011. I however expect Equity's growth to accelerate in the 3rd Quarter (2nd Qtr EPS was 48 cents against 34 cents in Q1).Hence EPS could actually come in higher at about Kshs 1.8. If it achieves this and trades at a more "realistic" PE of 17, then we will be looking at a price of 30.50.

I believe the above scenarios are rather optimistic and are based on rather simplistic assumptions on EPS and PE ratios. But I would happy if they came to pass.