JPMorgan Updates Recommendations and Target Prices for Consumer-Focused Turkish Companies

JPMorgan (NYSE:JPM) has evaluated consumer-focused Turkish companies using its newly established UMS'29 model. "As we approach 2025, we expect many companies to struggle in managing a challenging consumer environment by balancing growth with limited price increases," JPMorgan highlighted, indicating that consumer-focused companies would find it difficult to maintain stable margins in the visible disinflation environment, and that tightening pressures would continue in the first half of the year despite potential interest rate cuts.

JPMorgan noted that there are limited opportunities for real earnings growth among prominent performing companies such as BIM, Migros (IS:MGROS), Ford (IS:FROTO) Otosan, and Tofaş (IS:TOASO). "However, we believe that value opportunities are still present because the valuations provide discounts of approximately 40% on a 10-year average basis for JPM's P/E and EV/EBITDA, and 30% in comparison to international peers," they stated.

"We believe that to see further upside from these levels, a combination of timely interest rate cuts to support earnings growth and reduce risk premiums is necessary," JPMorgan emphasized, noting that they have updated their recommendations and price targets within this dynamic framework.

They upgraded Migros to "overweight" while downgrading ŞOK and Coca-Cola İçecek to "neutral." "Our top picks include BIM, Migros, Ford Otosan, and Arçelik (IS:ARCLK)," the statement read.

For the companies they monitor, including Arçelik, BIM (IS:BIMAS), Coca-Cola (IS:CCOLA) İçecek, Ford Otosan, Migros, Tofaş, and Şok Marketler (IS:SOKM), JPMorgan provided target prices for December 2026, while maintaining a target price of 494 TL for THY (IS:THYAO) for December 2025.