Analyst Ernesto Gabilondo from Bank of America Securities reiterated a Buy rating on Intercorp Financial Services (IFS – Research Report) and increased the price target to $40.00 from $35.00.
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Ernesto Gabilondo has given his Buy rating due to a combination of factors including Intercorp Financial Services’ strong earnings growth, exceeding expectations in the fourth quarter of 2024. The company reported a net income that grew significantly both quarter-over-quarter and year-over-year, surpassing market predictions mainly due to lower provision charges. This improvement in earnings was notable despite softer core revenue generation.
Furthermore, the company’s 2025 guidance indicates a promising high earnings per share growth and a robust return on average equity, suggesting continued financial strength. Management’s expectations for increased loan growth, higher net interest margins, and reduced cost of risk contribute to this positive outlook. Additionally, the target price has been adjusted upwards, reflecting the stock’s potential upside, supported by a lower beta and a higher sustainable return on average equity. These factors combined make Intercorp Financial Services a compelling investment opportunity, supporting the Buy rating.