Global banking giant lists top Borsa Istanbul stock picks
Formerly known as the "Istanbul Stock Exchange (IMKB)," now renamed "Borsa Istanbul (BIST)," it begins trading on Jan. 3, 1986, with 19 stocks. Over the past 34 years, it grows into a major marketplace where 409 stocks, as well as futures contracts, options, and warrants, are traded. (AA Photo)
U.S.-based global investment bank JPMorgan has evaluated the performance of Borsa Istanbul stocks, identifying its top recommendations.
In its assessment, the institution examined the impact of the disinflation process on consumer-focused companies and projected that inflation would decline to 26% by 2025.
According to the bank, companies such as BIM, Migros, Ford Otosan and Tofas face limited real earnings opportunities; however, they remain optimistic about valuation prospects.
“We believe valuation opportunities exist as these companies continue to offer approximately 40% discounts compared to 10-year averages and 30% discounts relative to international peers,” JPMorgan stated.
The bank highlighted its top picks, including BIM, Migros, Ford Otosan, and Arcelik, upgrading Migros to “overweight” while downgrading SOK and Coca-Cola to “neutral.” Target prices were set as follows, with December 2026 as the target date:
- Arcelik at ₺243 ($6,97)
- BIM at ₺985
- Coca-Cola Icecek at ₺79
- Koc Holding at ₺325.20
- Ford Otosan at ₺2,240
- Migros at ₺982
- Tofas at ₺278.80
- SOK Marketler at ₺73
Turkish Airlines’ target price was maintained at ₺494 for December 2025, according to the bank.
JP Morgan also reflected on the challenging consumer environment and ongoing economic pressures, emphasizing that many consumer-focused companies will struggle to sustain growth by balancing price increases. It projected difficulties in maintaining stable margins in a dis-inflationary environment.
Despite potential interest rate cuts, tightening pressures are expected to persist in the first half of the year.
Insurance sector shines on Borsa Istanbul
On the other hand, the insurance sector emerged as the top-performing industry in Borsa Istanbul over the past year, with its index rising an impressive 362%.
Fueled by strong financial performance, growing demand, and expectations of interest rate cuts paired with economic reforms, the sector is poised to maintain its upward trajectory.
- Ray Sigorta was the standout performer, delivering a staggering 2,244% return over two years despite a public float of only 5.04%.
- Türkiye Sigorta followed closely, achieving a 385% return between January 2023 and December 2024. Its stock price soared from ₺2.85 to ₺13.84 during this period, significantly outperforming the broader Borsa Istanbul, which recorded an 80% return over the same timeframe.
- Other notable performers include Anadolu Sigorta, which achieved gains exceeding 400% since the beginning of last year, with its stock price climbing from ₺18.4 to ₺99.65. Despite a six-month loss of 27%, Anadolu Sigorta posted year-to-date and one-year gains of 28% and 20%, respectively.
- Anadolu Hayat Emeklilik delivered a 344% return over the past two years, securing its place as the third-best performer in the sector.
- AgeSA outperformed with a 278% premium, well above the BIST 100 index.
- Ak Sigorta provided a 94% return, underperforming the insurance sector index but still surpassing the BIST 100 benchmark.
