BofA Securities Downgrades Banco Santander Chile (BSAC) to Underperform

BofA Securities analyst Ernesto Gabilondo downgraded Banco Santander Chile (NYSE: BSAC) from Neutral to Underperform with a price target of $24.00 (from $22.00).

The analyst comments "After 1Q results and revised 2025 guidance, we downgrade BSAC to Underperform from Neutral, as we fail to see further upside potential. We have already recognized (1) higher earnings estimates (above market consensus); (2) a sustainable ROAE of 23% (vs. 22% before); and (3) the lowest cost CoE in the region. Valuation seems demanding, reflecting a wide premium versus other banks in the region, even if assuming a favorable outcome in the next presidential election. The stock is trading at 2.3x ’25 P/BV, or at a +40% premium to other large caps in the region, such as ITAU (22% ROAE) and Banorte (23% ROAE), both of which trade at 1.7x ’25 P/BV."

For an analyst ratings summary and ratings history on Banco Santander Chile click here. For more ratings news on Banco Santander Chile click here.

Shares of Banco Santander Chile closed at $24.09 yesterday.

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