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Jefferies cuts GRUPOSUR stock rating, raises price target

Published 20/03/2025, 10:42
Jefferies cuts GRUPOSUR stock rating, raises price target

On Thursday, Jefferies made adjustments to its outlook on Grupo de Inversiones Suramericana (GRUPOSUR:CB) stock, changing the rating from Buy to Hold, while simultaneously increasing the price target to COP42,500.00, up from the previous COP37,500.00. The shift in the investment firm’s stance came after a virtual group meeting with Juan Esteban, the Chief Financial Officer of Grupo Sura.

The meeting covered several critical areas of focus for the company, including its various business segments such as Bancolombia (NYSE:CIB), Sura AM, and Suramericana. Discussions also delved into the company’s ongoing simplification process, its leverage and strategies for capital allocation. Following these discussions, Jefferies revised its Net Asset Value (NAV) estimate for Grupo Sura, raising it from COP49,882 per share to COP56,687 to reflect the company’s separation from Cementos Argos.

The updated price target of COP42,500 represents a maintained target holding discount of 25%. This revision indicates Jefferies’ recalibrated expectations for Grupo Sura’s stock performance, despite the downgrade in the overall stock rating.

Grupo de Inversiones Suramericana is a prominent player in the financial and insurance sectors within Latin America, with significant operations through its subsidiaries. The company’s strategic movements, including the recent split from Argos, are of keen interest to investors and market analysts alike, as they can have substantial impacts on the company’s financial health and stock valuation.

The new price target set by Jefferies reflects a nuanced view of Grupo Sura’s potential, balancing the positive aspects of the company’s strategic changes with a more cautious rating. This update from Jefferies provides investors with a revised perspective on the company’s future amidst ongoing developments within its business segments and corporate structure.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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