UPDATE: Raymond James Downgrades Credicorp Ltd. to Market Perform, Removes PT on Expected Soft Earnings Growth

In a report published Friday, Raymond James analyst Francisco Pereyra downgraded his rating on Credicorp Ltd.

from Outperform to Market Perform, and removed his $145.00 price target. In the report, Pereyra noted, “We are downgrading our rating for shares in Credicorp to Market Perform, from Outperform. After appreciating 42% from its market lows in August 2012, Credicorp is now trading at a 13.9x price-to-NTM earnings, according to our estimates, placing its valuation well above historical levels. In addition, we are expecting softer earnings growth going forward, based on: i) slower loan growth after the impressive credit growth cycle in Peru in the past 2-3 years; and ii) further pressures in the cost side derived from organic and inorganic growth. Nevertheless, we continue to like the Credicorp story, largely based on Peru's strong macroeconomic outlook, the bank's leading position in the Peruvian market, and above-average growth prospects; considering the still-low level of banking penetration in the country.” Credicorp Ltd. closed on Thursday at $158.50.