UPDATE: JP Morgan Upgrades Itau Unibanco Banco Holding SA to Overweight on Improved Outlook
JP Morgan upgraded Itau Unibanco Banco Holding SA (NYSE: ITUB) from Neutral to Overweight and raised the price target from $17.00 to $22.00.
JP Morgan noted, "We think earnings momentum will improve for Itau in 2013. We are forecasting that recurring earnings growth amounts to 12% in 2013 versus an estimated decline of 3.9% in 2012. This rebound should occur in spite of a still difficult environment for net interest income. In essence, after suffering from credit quality worsening in select parts of the portfolio, we think Itau has been doing the right things, including pulling back strongly in auto lending and improving cost performance."
Itau Unibanco Banco Holding SA closed at $17.46 on Wednesday.
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