HALISTER1: MORE: Davivienda Raised to Buy at Citi; Sees 2017 Offering

MORE: Davivienda Raised to Buy at Citi; Sees 2017 Offering

(Bloomberg) -- (Adds analyst name in first sentence, and updates with share move in second.)
  • Lender growing faster than peers, analysts Nicolas Riva, Carlos Rivera and Juan Carlos Arandia write in report.
  • NOTE: Banco Davivienda (PFDAVVND CB) shrs +2% to COP29,780, highest since Dec. 2014
  • 12-mo TP to COP37,000; rating raised to buy from neutral
  • Davivienda EPS estimates for 2016-2018 up 28%, 21% and 19% respectively on stronger loan growth
  • $380m equity offering at end of 2017 should increase Tier 1 capital
  • Grupo Aval raised to neutral; 2016-2018 earnings estimates raised 4%, 6% and 5% on lower operating expenses
    • Increases 12-mo TP to COP1,275
  • Bancolombia mantained at neutral; higher taxes to offset net interest income
    • Increases 12-mo TP to COP32,500
Story Link:NSN OD3530SYF02D
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

Tickers
PFDAVVND CB (Banco Davivienda SA)
BCOLO CB (Bancolombia SA)
AVAL CB (Grupo Aval Acciones y Valores SA)

People
Carlos Rivera (Citigroup Inc)
Juan Arandia (Citigroup Inc)
Nicolas Riva (Citigroup Inc)

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