In a report published Monday, J.P. Morgan & Co. initiated coverage on Santander Mexico BSMX with a Neutral rating and $16.00 price target.
J.P. Morgan noted, “We are initiating coverage with a Neutral rating and a Dec 2013 PT of Ps.37/share and US$16/ADR. As a leading financial institution, Santander Mexico is well positioned to benefit from the positive structural growth story of Mexican banks. However, we think cyclical trends and company-specific factors point to only modest earnings growth in the coming years. After rising 19% since its IPO, the valuation at 2.5x 12E bv and 13.0x 13E earnings does not look sufficiently compelling to recommend the shares. Credicorp and Bradesco remain our large cap Overweight-rated bank stocks.”
Santander Mexico closed on Friday at $14.43.
Market News and Data brought to you by Benzinga APIs© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in