Bancolombia downgraded to Market Perform from Outperform at Itau BBA

Itau BBA downgraded Bancolombia to Market Perform from Outperform with a $33 price target. The analyst expects the company to face net interest margin pressure due to lower rates, a normalization of the effective tax rate, a deterioration of the efficiency ratio due to higher costs and lower revenue generation, and a lower dividend payout. As such, the firm sees “many headwinds ahead” for Bancolombia.