On Monday, BofA Securities revised its stance on shares of Grupo Supervielle (NYSE:SUPV), elevating the rating from Neutral to Buy. Accompanying this upgrade, the firm also increased the price target to $15.00, up from the previous $11.20.
The upgrade reflects a positive outlook from the firm, despite Grupo Supervielle's weaker second half of 2024 performance, which saw softer earnings and lower returns on equity (ROEs). BofA Securities anticipates that the company's shift in asset mix—from investment securities that previously benefited from high interest rates and foreign exchange gains, towards credit—will yield future benefits.
"Strong real loan book expansion should translate into higher financial interests, implying a significant rebound on earnings and sound ROAEs levels," the firm said.
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