Bank of America Merrill Lynch Maintains Neutral on Credicorp (BAP)

Bank of America Merrill Lynch is out with its report today on Credicorp BAP, maintaining Neutral. In a note to clients, Bank of America Merrill Lynch writes, "EPS above estimates, but concerns about election linger Credicorp reported 1Q11 net income of US$175mn, impacted by a US$8.9mn gain on sale of securities. Adjusting for this gain, net income was US$166mn (US$2.08 per ADR), 9% above our estimate and 12% above consensus, for an ROE of 23.6%, vs. 18.7% in 4Q10. Recurring earnings grew 29% QoQ and 34% YoY. The quarter was characterized by strong revenue generation with solid contribution from net interest income, fee income and results from subsidiaries. Results imply upside risk to our and consensus estimates and should support positive stock reaction." Bank of America Merrill Lynch has a $130 price objective on BAP. Shares of BAP closed Monday at $101.27.