TSX gains after CPI shows US inflation rose 3%
Investing.com - HSBC has upgraded Banco BBVA Argentina S.A (NYSE:BBAR) from Hold to Buy while reducing its price target to $17.00 from $21.00. The stock currently trades at $8.32, having declined over 54% in the past six months. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value assessment.
The upgrade reflects HSBC’s positive view of BBVA Argentina’s determination to grow and gain market share organically, following what the firm described as a slower approach during the 2016-2019 cycle.
HSBC noted that the company is successfully executing its strategy, expanding with good asset quality and capitalizing on merger activity among competitors in the Argentine banking sector.
Despite the positive outlook, HSBC identified a significant risk factor: the possibility that BBVA’s parent company might decide to buy out minority shareholders with a relatively small premium, typically around 15%, which could limit upside potential for current investors.
The firm referenced a historical precedent from January 2001, when BBVA launched a tender offer for local shares that was ultimately withdrawn in June 2021, shortly before a devaluation occurred in December 2021.
In other recent news, BBVA Argentina reported its second-quarter earnings for 2025, which fell short of analyst expectations. The company posted an earnings per share (EPS) of $0.2083, significantly below the projected $0.37. BBVA Argentina’s revenue for the quarter was reported at $524.41 million. Despite the earnings miss, the company remains committed to its digital transformation and market share growth strategies. These developments are noteworthy for investors keeping an eye on the company’s performance. The earnings miss is a critical point of consideration for stakeholders evaluating the company’s financial health. Analyst firms have yet to publicly adjust their ratings or forecasts following this earnings announcement. Investors may want to monitor subsequent reports for any updates from analysts.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.