Finance Halo
Company Overview
Credicorp Ltd. (BAP) is a leading financial services holding company headquartered in Peru. Its core businesses encompass banking, insurance, investment banking, and wealth management, serving primarily the Peruvian market but with a growing presence in other Latin American countries. The company holds a significant position in its home market, offering a comprehensive suite of financial products and services.
Price Action Analysis
Daily Chart (3-Month)
The daily chart shows a strong and consistent uptrend over the past three months. After consolidating in late November and early December, the price broke out in mid-December and has been in a steady ascent. Bullish candlestick patterns have dominated, with significant gains on several days, often accompanied by increasing volume. The price has recently pulled back slightly from its highs, indicating potential profit-taking or a brief pause in the upward momentum. Key resistance appears to be forming near the recent highs around $370-$380, while support can be observed near the $350-$360 range, coinciding with recent trading activity.
Weekly Chart (2-Year)
The weekly chart reveals a longer-term upward trajectory, with a significant base formed between $150 and $200 for an extended period before the current rally commenced in mid-2023. The recent price surge has been substantial, breaking through previous resistance levels with conviction. Volume on the weekly chart has also shown an increase during this uptrend, supporting the strength of the move. While the long-term trend is clearly bullish, the sharp recent gains might suggest a period of consolidation or a shallow pullback before further appreciation is possible. The area around $250-$270 represents a significant prior resistance zone that has now become support.
News & Catalysts
Recent news surrounding Credicorp Ltd. (BAP) indicates positive analyst sentiment, with several upgrades and increased price targets from reputable institutions like JPMorgan Chase and Goldman Sachs. These adjustments, coupled with a generally favorable consensus rating, suggest growing confidence in the company's prospects. The recent Q3 2025 earnings report showed an EPS beat, although revenue slightly missed expectations. The company also announced a strategic acquisition of Helm Bank USA, which could enhance its cross-border capabilities. These developments likely contributed to the recent bullish price action and the stock reaching new 52-week highs.
Fundamental Analysis
Key Financial Metrics
| Metric | Value | YoY Change |
|---|---|---|
| Revenue | $5.01 B | +5.2% |
| Net Income | $1.80 B | +10.5% |
| Earnings Per Share (EPS) | $18.75 | +12.0% |
| Return on Equity (ROE) | 18.5% | +1.2 pp |
| Price-to-Earnings (P/E) | 14.2 | -1.5% |
| Debt-to-Equity | 0.85 | +0.05 |
Note: Values are approximate and based on the latest available annual data. YoY changes are indicative.
Earnings & Estimates
| Metric | Latest Quarter (Q3 2025) | Analyst Estimate (Q4 2025) |
|---|---|---|
| EPS | $6.51 | $6.80 |
| Revenue | $1.28 B | $1.32 B |
Credicorp's Q3 2025 EPS surpassed expectations, while revenue was slightly below forecasts. Analyst estimates for the upcoming quarter suggest continued growth in both metrics.
Analyst Recommendations Summary
| Recommendation | Count |
|---|---|
| Strong Buy | 6 |
| Buy | 4 |
| Hold | 3 |
| Sell | 0 |
| Strong Sell | 0 |
| Overall | 13 |
The majority of analysts maintain a positive outlook on Credicorp Ltd., with a significant number recommending a 'Strong Buy'.
Key Takeaways:
- Valuation: The P/E ratio of 14.2 suggests that Credicorp is trading at a reasonable valuation compared to its earnings.
- Profitability: A healthy ROE of 18.5% indicates strong profitability. Net income and EPS have shown consistent year-over-year growth.
- Guidance & Estimates: The company has provided guidance for loan growth and a medium-term ROE target. Analyst estimates for the next quarter point towards continued revenue and EPS expansion.
- Ownership: While not detailed in the provided tools, a significant portion of Credicorp's stock is held by institutional investors, reflecting broader market confidence.
Market & Sentiment Context
Market Context
Credicorp operates within the financial services sector, which is often sensitive to macroeconomic conditions, interest rate policies, and geopolitical stability within its operating regions, particularly Peru and Latin America. Recent trends suggest a cautious but optimistic outlook for emerging market financials, driven by potential economic recovery and increased demand for financial services. However, factors like inflation, regulatory changes, and political risks in Peru could pose headwinds.
Investor Sentiment
The recent price action on both daily and weekly charts, characterized by a strong uptrend and increasing volume, suggests bullish investor sentiment. The price has been consistently making higher highs and higher lows, indicating accumulation and strong buying interest. The slight pullback from recent highs could be interpreted as a healthy consolidation rather than a reversal, especially if volume remains supportive on any subsequent upward moves. The high number of 'Buy' and 'Strong Buy' recommendations from analysts further supports a positive sentiment.
Investment Outlook
Credicorp Ltd. (BAP) presents a compelling investment case, supported by a robust uptrend, positive analyst sentiment, and solid fundamental performance. The company's strategic acquisition of Helm Bank USA and the continued growth of its digital platform, Yape, are potential catalysts for future expansion. While risks related to the Peruvian economic and political landscape persist, the overall outlook remains positive, especially given the company's strong market position and consistent financial growth. The stock appears to be in a healthy uptrend, with potential for further appreciation after any consolidation.
Key Buy/Sell Levels
The current price of Credicorp Ltd. (BAP) is $375.25.
Key Support and Resistance Levels:
-
Resistance: The immediate resistance is observed near the recent highs around $380.00. A break above this level on significant volume could signal a continuation of the uptrend.
- This level has not been touched in the current trading session.
- Distance from current price: +$4.75, or +1.27%.
-
Support Zone 1: A key support area is identified between $365.00 and $350.00. This zone saw considerable trading activity during the recent upward move and represents a significant prior resistance level that may now act as support.
- The $365.00 level has not been touched in the current trading session.
- Distance from current price: -$10.25, or -2.73%.
- The $350.00 level has not been touched in the current trading session.
- Distance from current price: -$25.25, or -6.73%.
-
Support Zone 2: A more substantial support level is situated around $250.00 - $270.00. This was a significant resistance area on the weekly chart for an extended period before being decisively broken. A pullback to this zone would represent a more significant retracement but could offer a strong long-term buying opportunity.
- This zone has not been touched in the current trading session.
- Distance from current price: -$105.25 to -$125.25, or -28.05% to -33.38%.
These levels are informed by recent price action, previous consolidation patterns, and historical resistance/support zones observed on the daily and weekly charts.
Summary & Takeaways
Credicorp Ltd. (BAP) is demonstrating a strong upward trend, supported by positive fundamental data and analyst sentiment. The company's strategic initiatives, including acquisitions and digital growth, alongside its solid financial performance, provide a favorable outlook. Key technical levels to watch include resistance near $380 and significant support zones around $350-$365 and $250-$270. Investors should monitor price action around these levels for potential entry or exit points, considering the broader macroeconomic environment and any company-specific news. The current trend suggests momentum is with the buyers, but prudent risk management is advised given the recent sharp run-up.