Intel, Ford and Target rise premarket; Deckers slumps
Investing.com - JPMorgan has upgraded Banco Macro S.A (NYSE:BMA) from Neutral to Overweight while adjusting its price target to $79.00 from $89.00. The stock, currently trading at $53.25, has shown strong momentum with a notable return over the last month, according to InvestingPro data.
The upgrade comes as JPMorgan views Banco Macro as a defensive name among Argentine banks due to its strong capitalization and exposure to government employees through exclusivity agreements with select provinces. With a market capitalization of $3.67 billion and an attractive dividend yield of 6.89%, the bank maintains a GOOD financial health score according to InvestingPro analysis.
JPMorgan notes that while Argentine banks have de-rated year-to-date amid high uncertainty, they could potentially re-rate toward approximately 3x price-to-book value multiples—levels reached during the Macri administration—if macroeconomic normalization continues and loan demand increases. Currently, Banco Macro trades at a price-to-book ratio of 1.22x, suggesting potential upside if historical valuations are achieved. Get deeper insights and access to comprehensive valuation analysis with InvestingPro, which offers 8 additional exclusive tips for this stock.
The investment bank favors Banco Macro specifically for three defensive characteristics: higher capital position, reduced exposure to consumer loans (limiting asset quality deterioration risk), and a higher share of liquid assets that could result in more resilient net interest margins.
JPMorgan describes the Argentine market as a "binary story" dependent on the government successfully implementing its fiscal control plan and achieving disinflation, with Banco Macro positioned as one of the top five private banks in the country.
In other recent news, Banco Macro announced a significant share repurchase program, authorizing the buyback of up to 30 million Class B common shares. This move represents approximately 10% of the bank’s capital stock, with a total expenditure of up to 225 billion Argentine pesos. In its Q2 2025 earnings call, Banco Macro reported a notable 209% increase in net income quarter-on-quarter, showcasing strong financial performance. However, the bank’s earnings per share (EPS) of $1.71 fell short of the forecasted $1.92, marking a 10.94% negative surprise. HSBC upgraded Banco Macro’s stock rating from Hold to Buy, citing its robust capital position as the best in the Argentine banking system. Despite lowering the price target to $80.00 from $104.00, HSBC believes the bank is well-positioned to seize market opportunities. These developments are part of a series of recent updates concerning Banco Macro’s financial and strategic positioning.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.