Deutsche Bank Downgrades Credicorp To Hold, Lowers PT

Deutsche Bank has downgraded Credicorp BAP from Buy to Hold citing uncertainty surrounding the upcoming presidential elections in Peru. According to Deutsche Bank, “According to the latest Ipsos/Apoyo poll, Ollanta Humala is leading in the polls with 42% of the voters' preferences, vs. 36% for Keiko Fujimori, 10% undecided, and 12% leaving the ballot blank. We think country risk is likely to remain at elevated levels, given increased potential for dramatic political change. As such, we are reducing our PT to $112, assuming a country risk of 200bps (just above the one-month average of 190bps) and downgrading the stock to Hold.” Deutsche Bank has also lowered its price target on BAP from $124 to $112. BAP closed last Thursday at $92.83.