JPMorgan Says Credicorp Top Peru Pick in Bet on Economic Growth
JPMorgan included Lima-based Credicorp, owner of Banco de Credito del Peru, in its list of top picks for the region after a 27 percent fall since April 1, saying economic growth will keep supporting earnings in the country’s banking industry, according to an e-mailed note to clients dated yesterday.
“We like the long-term secular growth story for financial services penetration in Peru,” Saul Martinez, an analyst at JPMorgan, said in the note. “Credicorp will sustain healthy profitable levels, on average, in the coming years.”
JPMorgan maintained a year-end 2013 price target of $158 per share for Credicorp, according to the note. The stock rose 50 cents to $120 at 11:03 a.m. today in Lima.
Credicorp is trading at 11.4 times its estimated earnings for the current year, 15 percent below its average estimated price-to-earnings ratio of the last four years.
Peru’s gross domestic product will grow 5.75 percent in 2013 and 6 percent in 2014, the fastest of any major Latin American country after Panama, according to economists’ estimates compiled by Bloomberg.
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