According to a research report published earlier today, Bank of America has upgraded Banco Santander Brasil BSBR shares to a Buy rating and raised its PT 18 percent to R$20.
Bank of America explained in the report, “New P.O. derives from: 1) a 100bp reduction on COE, following the removal of the capitalization overhang from the parent company; and 2) 3% higher estimates for 2012-13. We estimate EPS growth of 17% for 2012-13, one of the fastest among LatAm banks. Our more optimistic view of credit growth explains the difference with guidance for 15% EPS growth; we expect 20% while Santander 15-17%. We remember that guidance was announced in September, amid liquidity concerns in Europe. Credit markets have improved and, in our view, a guidance revision cannot be ruled out. Guidance revision could occur in April when the company reports 1Q12 results.”
Banco Santander Brasil SA closed Friday at $10.09.
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