BAP - Credicorp stock gains after Credit Suisse upgrades on Peru's economic outlook
- Credicorp ( NYSE: BAP ) stock is rising 4.8% in midday Tuesday trading after Credit Suisse analyst Alonso Garcia upgraded the Peru-based bank to Outperform from Neutral as he sees Peru as "one of the most defensive countries in the LatAm region amid a global economic slowdown, rising yields, and risk aversion sentiment."
- Overall, the Credit Suisse economics team expects Peru to fare better than most of its regional peers in GDP growth in 2022 and 2023, with "the best fiscal results and one of the lowest debt burdens," Garcia wrote in a note to clients.
- With the stock at a discounted valuation, Credicorp ( BAP ) has an attractive risk-reward profile, he said.
- Year-to-date, BAP stock has slipped 2.0% vs. the S&P 500 20% drop.
- Garcia's Outperform rating aligns with the SA Quant rating of Buy and is more bullish than the a verage Wall Street rating of Hold.
- SA contributor Stephen Simpson wasn't as optimistic about Credicorp ( BAP ) in March, saying it short-term valuation metrics were more "okay" than compelling.
For further details see:
Credicorp stock gains after Credit Suisse upgrades on Peru's economic outlook