SANTANDER GBM CONGRATULATES FORUS

The investment bank started its coverage highlighting the historical benefits of the company and its zero exposure to credit business.

Santander GBM initiated its coverage titles Forus, with a target price of $ 3,000 and “buy”.

“We see Forus like a well-positioned company, with no exposure to credit business and a strong record of organic growth (CAGR of 13% on the sales floor in the last four years),” said the company.

He added that despite the economic slowdown has pressured profits, “Forus has historically shown substantial benefits (~ 25% ROE in 2014), above the average of its peers LatAm (~ 9.0 pp)” he said.

In that sense, the investment bank said that the economic recovery  expected for 2015 should lead to a gradual recovery in margins, providing an attractive investment opportunity considering a P / E estimate for 2015 15,3x .

“However, we expect to see inorganic growth in the coming years in order to diversify sales (81% of sales are in Chile),” concluded Santander GBM.