UPDATE: Bank of America Initiates Coverage on First Bancorp Puerto Rico with Buy Rating, $9 PT on Strong Upside Potential

In a report published Friday, Bank of America analyst Erika Penala initiated coverage on

with a Buy rating and $9.00 price target. In the report, Bank of America noted, “We are initiating coverage on San Juan, Puerto Rico-based First BanCorp (FBP) with a Buy rating and a $9 price objective. We think FBP offers investors an opportunity to invest in one of the few remaining, 'early stage' credit recovery stories in the banking sector – implying a more material incremental re-rate in market multiples and sentiment. In fact, the 33% potential upside implied by our PO is the highest in our coverage universe. Over the past 12 months, stocks identified as ‘credit recovery' stories are up 56%, outperforming S&P Banks by 31%. We think FBP is on track to outperform the sector, as our POs for FBP's smid cap peers imply just 1% upside from current levels.” First Bancorp Puerto Rico closed on Thursday at $6.75.