THE Itaú BBA raised the target price of BTG Pactual (BPAC11) from R$33 to R$35 after analyzing the bank’s financial result in the first quarter of 2022, shows a report from the institution sent to customers this past Thursday (19).
The value stipulated for the action represents an increase of 41.87% in comparison with the closing of this last Friday (20).
Analysts comment that the guidance of around 20% ROE for fiscal year 2022, which starts on July 1, 2021 and ends on June 30, 2022, seems more viable now, and even tilts upward. .
“This includes expectations of even stronger results for the second quarter of 2022 than for the first quarter of the same year, even without considering another major contribution from C&T”, explain Pedro Leduc, Mateus Raffaelli and William Barranjard, who signed the report.
They expect markets to welcome the bank’s continued superior performance of ROAs and new cash in the Wealth and Asset Management divisions. “This underscores the success of BTG Pactual’s investments to attract capital and/or customers via B2C channels,” they say.
Expectations for BTG Pactual’s net income grow
Analysts also raised expectations for fiscal year net income by 8% to BRL 8.0 billion, up 26% year-on-year.
Itaú BBA considers that BTG Pactual will continue to allocate significant investments in human resources and digital units and that this will not bring efficiency gains in the beginning, but will support growth in the long term.
“The attractive combination of low valuations (12/10x 2022/23 P/E) and rapid earnings expansion makes BTG our
preferred “macro/beta” choice in the financial space”, they conclude.
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Source: Moneytimes
I am an author at Global happenings and I mostly cover automobile news. In my time working in the automotive industry, I have developed a keen interest in the latest developments and trends. My writing skills have also allowed me to share my knowledge with others through articles and blog posts.
