Barclays Maintains an 'Underweight' on Bancolombia (CIB); Valuation Paradox

Barclays maintains an 'Underweight' on Bancolombia S.A. (NYSE: CIB), PT increased from $54 to $57.

Barclays analyst says, "Despite acknowledging the Colombian macro outlook remains supportive for banking, we find it hard to get more enthusiastic with Bancolombia at these valuation levels - CIB trades at 15.1x 2011E earnings, and 2.6x 2011E book value, expensive compared to its LatAm peers' average. We believe the 'scarcity value' argument only partly justifies CIB's premium valuation."

For more ratings news on Bancolombia S.A. click here and for the rating history of Bancolombia S.A. click here.

Shares of Bancolombia S.A. closed at $64.69 yesterday.

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