BofA Securities Upgrades Security Bank Corp to Buy, Sets Price Target at PHP136.00
BofA Securities recently upgraded its rating on Security Bank Corp (SECB:PM) (OTC: SYBJF) from Neutral to Buy, citing a strong growth outlook. The new price target of PHP136.00 reflects a forward-looking price-to-book ratio of 0.65 times for fiscal year 2025 estimates. The firm's analyst forecasts a 23% profit growth in fiscal year 2024 and a 38% increase in fiscal year 2025, driven by robust credit growth and NIM uplift following rate cuts.
The upgrade indicates a bullish view on Security Bank's financial performance, with profit estimates for fiscal years 2025 and 2026 revised up by an average of 13%. BofA Securities' outlook is more optimistic than the consensus, suggesting potential for further upward revisions by other analysts and investors. The analyst's expectations for future growth exceed current market consensus, highlighting the bank's unrecognized potential.
In summary, BofA Securities' upgrade and price target raise for Security Bank Corp indicate a positive outlook on the bank's growth prospects. Investors may consider this news when making investment decisions to potentially benefit from the expected increase in profitability and stock price.