Jul
20
In a report published Monday, Raymond James analyst Federico Rey Marino upgraded the rating on Grupo Financiero Galicia S.A. (ADR) (NASDAQ: GGAL) from Market Perform to Outperform, while establishing a price target of $30. The company is expected to benefit from the various economic reform measures likely to be taken by Argentina’s new government.
“Grupo Financiero’s strengths lie in the company’s top-of-the-class distribution capabilities, and adequate financial position,” which should help it take advantage of material growth opportunities that may soon emerge in Argentina’s banking segment.
Anlyst Federico Rey Marino pointed out that the company’s 2016 earnings in US dollars are expected to decline 17 percent due to the corrective economic measures expected to be introduced by the next administration.
Grupo Financiero’s income is, however, expected to recover 29 percent in US dollar terms in 2017 driven by real loan growth of 17 percent, Marino added.
In the report Raymond James noted, “Shares in GGAL are selling at 7x 2016E forward earnings, which compare with the regional average of 10x, or with the average of 12x for Peruvian and Mexican banks, which present similar growth potential, in our view.”
The EPADS estimate for 2015 has been raised from $2.36 to $3.15.
Posted-In: Raymond JamesAnalyst Color Upgrades Analyst Ratings
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