Goldman Sachs upgrades Credicorp to Neutral, raises PT to $225.

Goldman Sachs upgrades Credicorp to Neutral, raises PT to $225.

Goldman Sachs has revised its stance on Credicorp (BAP, Financial), upgrading its rating to Neutral from a previous Sell. The firm's new price target for the stock is $225, up from an earlier target of $174. This revision suggests a potential downside of 2% from the current market value.

The decision reflects Goldman Sachs' view of a more favorable macroeconomic environment and anticipated robust growth from Credicorp's subsidiaries, which are expected to enhance the company's profitability. Additionally, the bank notes that the credit cycle in Peru has likely reached its peak, and asset quality is projected to experience further improvement.

Based on the one-year price targets offered by 11 analysts, the average target price for Credicorp Ltd (BAP, Financial) is $232.79, with a high estimate of $274.97 and a low estimate of $173.98. The average target implies an downside of 1.78% from the current price of $237.00. More detailed estimate data can be found on the Credicorp Ltd (BAP) Forecast page.

Based on the consensus recommendation from 12 brokerage firms, Credicorp Ltd's (BAP, Financial) average brokerage recommendation is currently 2.2, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.

According to GuruFocus estimates, the estimated GF Value for Credicorp Ltd (BAP, Financial) in one year is $194.57, suggesting a downside of 17.9% from the current price of $237. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Credicorp Ltd (BAP) Summary page.

Credicorp Ltd (BAP, Financial) reported a high ROE of 20.3% for the first quarter of 2025, exceeding expectations. The Peruvian economy is rebounding faster than expected, with a GDP growth of 3.9% in Q1 2025, supporting Credicorp's growth. Loan growth resumed, particularly in wholesale banking and short-term loans, with expectations for retail segments and microfinance to accelerate in the coming quarters. Credicorp's risk-adjusted NIM improved year over year, driven by lower provisioning and enhanced asset quality. The company has made strategic investments in digital capabilities and modernized core systems, contributing to diversified income streams and scalable growth.

However, global uncertainty, including trade tensions and potential recession risks, poses challenges to Peru's economic outlook and Credicorp's performance. The revaluation of Bolivia's balance sheet led to a contraction of 2% in Credicorp's total assets. Despite strong economic growth, loan growth remains relatively muted, with a lag in recovery following previous economic cycles. Interest rates are declining, which could impact net interest margins if not offset by other factors. Political uncertainty in Peru, including upcoming elections, could affect market sentiment and economic stability.

References:

[1] https://www.gurufocus.com/news/2998826/goldman-sachs-revises-credicorp-bap-rating-to-neutral-bap-stock-news
[2] https://www.ainvest.com/news/goldman-sachs-q1-earnings-quarter-2507/
[3] https://www.zawya.com/en/business/investment/goldman-sachs-alternatives-buys-majority-stake-in-mace-unit-lnhddgwn