Itau BBA Upgrades Banco Santander Chile (BSAC) to Outperform

Itau BBA analyst Jorge Pérez upgraded Banco Santander Chile (NYSE: BSAC) from Market Perform to Outperform with a price target of $22.00.

The analyst comments: "Despite the better profitability that we foresee for Santander in 2025, we see its stock trading at a 13% discount to Banco de Chile’s, at 1.6x forward P/B, compared with 1.8x for Banco de Chile. Earnings-wise, Santander is at 8.6x P/E, compared with 10.0x for Banco de Chile. This premium had seemed justifiable over the last couple of years, given the large difference in profitability. However, as we have mentioned, we now see Santander’s profitability surpassing Banco de Chile’s from 2025 onward. We think that the valuation gap is likely to close and that the two banks will trade at similar levels again. Our target prices for both banks imply a P/B of 2.1x."

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 $18.53 yesterday.

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