UPDATE: Credit Suisse Upgrades Bancolombia SA to Outperform, Lowers PT as Valuation Seems Attractive

In a report published Friday, Credit Suisse analyst Marcelo Telles upgraded the rating on

from Neutral to Outperform, but lowered the price target from $69.00 to $61.00. In the report, Credit Suisse noted, “Following our multi-year negative stance on Bancolombia, we decided to raise CIB from Neutral to Outperform as valuation seems attractive even after we incorporate the upcoming capital increase as well as HSBC acquisition, on the back of recovery in margins and better asset quality. Our new TP at US$61/ADR (US$69 previously) offers attractive upside potential of 24%. We forecast EPADR of US$4.34 for 14' and US$4.78 for 15' (ex-goodwill), implying improvement in ROE to 15.1% from 13.5% in 13'.” Bancolombia SA closed on Thursday at $49.34.