Analysts come out ambivalent on Intergroup's bad fourth quarter

- Thursday, February 3, 2011

Analysts come out ambivalent on Intergroup's bad fourth quarter

A bad fourth quarter for Peru's Intergroup Financial Services (IFS) did not do much to faze equity analysts, who acknowledged the miss but left their ratings unchanged.

In a note to investors, Chilean investment bank Celfin Capital reaffirmed its buy rating, even though the group's fourth quarter earnings of 102.4mn soles (US$37mn) were 13.3% below its forecast.

"Our assessment of the long-term growth prospects for the group and the Peruvian credit market remain unchanged, and we believe Intergroup's strong position in the retail segment should be a key element for taking advantage of this growth potential," Celfin said.

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Barclays Capital analysts Roberto Attuch and Fabio Zagatti noted that fourth quarter results were also about 14% off their own forecasts on the bank's earnings.

Still, they left their rating for the bank at equal weight and concluded their analysis with something of a shrug: "We sense at the current valuation, investors have quite bullish expectations for IFS, and the quarter's results may not necessarily meet expectations."