10 Stock Ideas From Eastern Europe, Middle East And Africa

• Bank of America just released its new list of 10 top EEMEA stock ideas.

• Buy ideas include Barclays Africa, Erste and Netcare.

• Sell ideas include Evraz, Guinness Nigeria and VTB.

In a new report, Bank of America analyst John Morris lists the form’s top 10 Eastern Europe, Middle East and Africa (EEMEA) stock ideas. Here’s a breakdown of the list for international investors:

1. Buy: Barclays Africa Group

Morris sees deposit growth, new systems and continued cost savings boosting earnings prospects.

2. Buy: Erste Bank

Morris sees attractive exposure to recovery in Central and Eastern Europe.

3. Buy: Netcare

Netcare has underperformed the South Africa market despite being the only hospital in the region not to endure earnings downgrades back in May.

4. Buy: SAMBA

Morris sees SAMBA as well-positioned to capitalize on rising U.S. interest rates and Saudi debt issuance.

5. Buy: Turkish Airlines

Morris is projecting 11 percent CAGR in traffic and 20 percent CAGR in EBITDAR from 2014 to 2017.

6. Buy: Ulker

Morris believes Ulker is in position for earnings recovery this year on strong margins, innovation, and growth normalization.

7. Buy: X5 Retail Group

Morris sees upgrades ahead for X5, as six consecutive quarters of improvements suggest that a turnaround is underway.

8. Sell: Evraz

The company’s focus on long steel exposes it to too much risk from weak construction and fierce competition.

9. Sell: Guinness Nigeria

Morris believes that the stock is overvalued trading at about 34x 2016 estimated earnings.

10. Sell: VTB

Morris does not feel that the recovery in VTB's business has been strong enough to justify the stock’s premium valuation.

Disclosure: the author holds no position in the stocks mentioned.