In a report released today, Ernesto Gabilondo from Bank of America Securities reiterated a Buy rating on Intercorp Financial Services (IFS – Research Report), with a price target of $43.00.
Ernesto Gabilondo has given his Buy rating due to a combination of factors, including Intercorp Financial Services’ impressive financial performance in the first quarter of 2025. The company reported a net income of S$444 million, which represents a significant year-over-year increase and exceeded both Bank of America’s and Bloomberg’s expectations. This strong performance was driven by robust results in their financial and insurance sectors, which offset some impairments related to Telefonica.
Additionally, Gabilondo noted the substantial improvement in the company’s return on average equity, which rose to 16.3% from 5.6% in the previous year. The company’s diversified earnings mix, recovery in wealth management, and strong digital trends contribute to its attractive valuation. With a potential upside of 24% and a sustainable ROAE of 18%, Gabilondo sees Intercorp Financial Services as one of the leading growth stories among Latin American banks, justifying the Buy rating.