Ernesto Gabilondo, an analyst from Bank of America Securities, reiterated the Hold rating on Credicorp (BAP – Research Report). The associated price target was lowered to $207.00.
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Ernesto Gabilondo’s rating is based on a combination of factors affecting Credicorp’s financial outlook. Despite the company’s recent performance showing strong recurring net income growth and improvements in return on average equity (ROAE), the outlook for 2025 suggests only modest earnings growth and limited upside potential. The forecasted earnings per share (EPS) growth of 12% aligns closely with the company’s guidance, and while Credicorp offers attractive double-digit earnings growth, the current valuation seems to fully reflect these expectations.
Gabilondo also noted the impact of a one-time fraud incident that affected net income, though the underlying growth remained robust. Credicorp’s future performance hinges on factors like loan portfolio expansion, net interest margin stability, and reduced cost of risk. However, the price objective for Credicorp’s stock has been slightly reduced, indicating a cautious stance on the stock’s potential to outperform. Consequently, the Hold rating reflects a balanced view between the company’s growth prospects and the valuation constraints.