BTG Pactual soars after Goldman Sachs raises target unit price

 BTG Pactual soars after Goldman Sachs raises target unit price

Goldman Sachs showed positive expectations for the bank's quarterly results and raised the target price for the papers, supported modestly higher estimates for BTG's earnings in 2021

By Felipe Saturnino, Valor - Sao Paulo



BTG Pactual's units are among the most highlights of Ibovespa's rise this Wednesday, advancing 5.75%, around 12:00.


Goldman Sachs showed positive expectations for the bank's quarterly results and raised the target price for the securities, supported modestly higher estimates for BTG's earnings in 2021.



Goldman Sachs sees BTG's profits grow by 2% to five in 2021 compared to 2020, mainly thanks to the strengthening of investment bank and company loan revenues, partially offset by weaker sales and business.



"We also incorporated the bank's R $ 2.6 billion capital increase within the half-moon, resulting in higher interest income," write analysts of the American bank during a note sent to clients, citing their estimates 5% above the consensus in 2020 and eight above in 2021. As a result, the target price of the papers was raised to R $ 125 and therefore the purchase recommendation was maintained.


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"We expect solid leads to the fourth quarter with return on equity improving to 17.8% from 15.7% within the previous quarter," also says Goldman, within the report, on the results for the half-moon of the year.


Most of the record revenue lines are expected to point out improvements with “continued strength in investment banking, corporate loans and asset and wealth management, while sales and business could also be a touch weaker, but still healthy,” consistent with the analysts.


(Content originally published on Valor PRO, Valor's real-time news service)

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