Raymond James Upgrades Bancolombia to Outperform
Raymond James raises its rating on Bancolombia (NYSE: CIB) to Outperform from Underperform and sets a price target of $72 on shares.
Raymond James notes, "In spite of its still rich valuation, our constructive view on Bancolombia is based on three factors: 1) we estimate the Colombian banking sector will be the fastest growing banking industry in Latin America in 2012; 2) the upcoming capital injection (approximately $950 million; see page 2) will provide sufficient resources to continue outgrowing the system average growth rate, without affecting its solvency position; 3) its price performance relative to regional peers since the market lows in October 2011 places Bancolombia in more attractive valuation territory."
CIB closed at $60.92 a share on Monday.
