Intercorp Financial Services price target lowered to $25 from $29 at BofA

BofA analyst Ernesto Gabilondo lowered the firm’s price target on Intercorp Financial Services to $25 from $29 and keeps a Buy rating on the shares, noting that the firm estimates about 8% of IFS‘s total loan book is exposed to located impacted areas from a potential “El Nino.” The firm is cutting 2024-25 estimates by 8% to reflect softer lending dynamics and higher provision charges related to El Nino and while it sees temporary weak earnings, it also sees the potential for a significant bounce back in 2024 supported by a normalization in provisions as El Nino is a one-time impact and a gradual recovery in the wealth management results.