Credicorp Ltd.: Morgan Stanley raises to overweight from equal-weight

Morgan Stanley has upgraded Credicorp Ltd. (NYSE: BAP) to an Overweight rating from Equalweight, while raising its price target to $480.00 from $375.00. The move reflects the firm’s optimism about Peru’s economic and political outlook, particularly with the anticipated leadership of Keiko Fujimori’s Fuerza Popular party, which is expected to bring macroeconomic stability and improved governance.

Credicorp’s stock has appreciated significantly over the past year, rising 74% to $364.28 as of June 17, 2026. Despite this, Morgan Stanley suggests the shares remain undervalued, with a Fair Value estimate of $394. The firm also noted that Credicorp’s loan book has shown modest growth in recent years, but expects credit expansion to accelerate to 12% annually from 2027 to 2030, up from a prior estimate of 8%.

This projected credit growth is expected to enhance net interest income, net interest margin, and cost efficiency. Morgan Stanley has raised its net income forecasts by 3% in 2027, 7% in 2028, 11% in 2029, and 15% in 2030. The firm now forecasts a return on equity (ROE) of 21.5% in 2030, up from 19.3% previously.

In its first-quarter 2026 earnings report, Credicorp exceeded EPS expectations, achieving $7.55 compared to a forecast of $7.18. However, revenue fell short of estimates, coming in at $1.78 billion versus $1.82 billion. Political uncertainty in Peru has also led to recent volatility, with Credicorp’s shares falling 4.8% amid a tight presidential race.