Intercorp Financial Services, the Financial sector company, was revisited by a Wall Street analyst yesterday. Analyst Ernesto Gabilondo from Bank of America Securities reiterated a Buy rating on the stock and has a $51.00 price target.
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Ernesto Gabilondo has given his Buy rating due to a combination of factors that highlight the strong financial performance and potential growth of Intercorp Financial Services. The company’s earnings for the second quarter of 2025 doubled year-over-year and exceeded expectations, driven by improved investment results and a recovery from previous impairments in the insurance sector. This financial strength was further supported by lower provision charges, which helped counterbalance the modest growth in net interest income and increased operating expenses.
Moreover, the wealth management division demonstrated significant earnings recovery, with profits more than tripling quarter-over-quarter. This improvement, alongside a consolidated return on average equity rising to 20.7%, underscores the company’s robust earnings potential. The attractive valuation, trading at a relatively low book value despite high expected returns, and the increased price objective of USD 51, suggest a 35% potential upside, reinforcing the Buy recommendation.
IFS’s price has also changed moderately for the past six months – from $32.920 to $37.660, which is a 14.40% increase.