Credicorp (NYSE:BAP): Revisiting Valuation After Upgraded Zacks Rank and Higher Full‑Year Earnings Estimates

Credicorp (NYSE:BAP) just caught fresh attention after its Zacks Rank moved to a Buy, supported by a sizable upward revision in full year earnings estimates over the past quarter.

See our latest analysis for Credicorp.

The improved Zacks outlook lines up with Credicorp’s recent momentum, with the stock’s 1 day share price return of 2.46 percent helping extend a powerful year to date share price return of 41.97 percent and an impressive 3 year total shareholder return of 110.35 percent.

If Credicorp’s run has you thinking about what else could surprise to the upside, this is a good moment to explore fast growing stocks with high insider ownership.

Yet with the shares already near record highs, trading at a discount to Wall Street price targets but up sharply over the past three years, is Credicorp still a compelling buy, or is the market already pricing in its growth?

Most Popular Narrative: 8.8% Undervalued

Based on the most followed narrative, Credicorp's fair value of $286.58 sits comfortably above the latest close at $261.23, framing an upside story grounded in upgraded growth expectations and a slightly lower discount rate.

Ongoing investments in digital platforms, AI, and end to end automation are boosting operational efficiency, enabling scalable service delivery with lower marginal costs, which is expected to further improve the group's net margin as revenue from digital channels grows.

Read the complete narrative.

Curious how a traditional bank earns a growth style valuation without leaning on extreme forecasts? The narrative rests on persistent top line expansion, surprisingly resilient margins, and a future earnings multiple that hints at more than just steady banking economics.

Result: Fair Value of $286.58 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, this outlook could be challenged if Peru’s political or regulatory climate deteriorates, or if Yape’s rapid loan growth triggers higher than expected credit losses.

Find out about the key risks to this Credicorp narrative.

Build Your Own Credicorp Narrative

If you see the story differently or want to stress test the numbers yourself, you can build a custom view in just minutes: Do it your way.

A great starting point for your Credicorp research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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