Abu Dhabi Islamic Bank Price Objective, EPS Estimates Up as BofA Notes 'Compelling' Earnings Outlook

07:59 AM EDT, 08/27/2026 (MT Newswires) -- BofA Global Research raised its price objective for Abu Dhabi Islamic Bank (ADX:ADIB) to 27.20 Emirati dirhams from 26 dirhams amid a "compelling" earnings outlook, expecting an 11% EPS compound annual growth rate over the 2026 to 2028 period. "Abu Dhabi Islamic Bank (ADIB) remains one of the strongest growth stories in the sector. We see manageable [net profit margin] pressure, sustained [non funded income] momentum and [cost of risk] normalisation that does not derail 2027E EPS growth. We forecast a c.14% gross financing CAGR and c.11% revenue CAGR over 2025-28E, supporting a c.25% average ROE, or 26% on the company's definition. ADIB's AED1.75bn rights issue announced on 25 August, improves its funding for growth," analysts wrote in a Wednesday note. "While ADIB's 3.25x P/BV is 36% above its 5Y average, we believe its superior growth and structurally high ROE justify the premium." As such, the research firm raised its EPS estimates for 2026 through 2028 by between 0.4% and 10%. Net profit margin is also forecast to recover from 2027 on the back of lower expected funding costs. The buy recommendation on the stock was reiterated.