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We are downgrading our stance from a Hold to a Sell on FIMBank p.l.c. with a 12-month price target of $0.56 from our previous target of $0.53. The Group currently has accumulated losses amounting to $39.6 million at bank level, resulting in the Bank being in a difficult position to distribute dividends in the short to medium term. Before this situation is reversed, and the Bank is in a position to distribute retained earnings, we cannot see the case for meaningful and sustained buying interest, commensurate with the necessary momentum to drive the share price higher. At the current price of $0.64, FIMBank is currently trading at a Price to Book (P/B) multiple of 1.1x, which we deem to be expensive when compared to peers in the banking sector, and complimented by the technical headwinds arising from the Group’s inability to distribute dividend payments in the foreseeable future. At a target price of $0.56, the forward earnings yield for FY 2019 and FY 2020 remains low at 4.6

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