UPDATE: Bank Of America Upgrades Santander Consumer USA On Attractive Growth Potential

In a report published Monday, Bank of America analyst Kenneth Bruce upgraded the rating on Santander Consumer USA Holdings SC from Neutral to Buy, and reiterated the $28.00 price target. In the report, Bank of America noted, “Upgrading Santander Consumer (SC) to a Buy from Neutral given healthy fundamentals and a more attractive valuation, which could lead to 25% upside. SC has sold off about 12% from its post-IPO peak in February, as equity markets have reflected a slower domestic recovery and a rotation away from risky-assets. With SC's Q1 results demonstrating robust volume growth into a difficult seasonal period and favorable credit, the healthy fundamental backdrop should build confidence that it can generate healthy top-line and bottom-line growth. "We maintain our $28 PO, reflecting a ~11.5x P/E multiple to our 2015 EPS forecast, which is achievable as SC executes its organic growth strategy and delivers robust returns. With strong momentum into 2014, we think SC is well positioned to deliver attractive fundamentals into a market with better sentiment, especially if broad economic growth accelerates in the back-half of the year.” Santander Consumer USA closed on Friday at $22.50.