JPMorgan Upgrades Grupo Cibest (CIB) to Overweight

JPMorgan analyst Yuri Fernandes upgraded Grupo Cibest (NYSE: CIB) from Neutral to Overweight with a price target of $110.00 (from $70.00).

The analyst comments: “Cibest/Bancolombia (CIB) reported COP 2.7 trillion in net income, an impressive 29% ROE (36% ROE in Colombia), a ~44% beat versus JPM estimates, and ~35% above Bloomberg consensus. Even adjusting for one-time gains, this would still be a 27% EBT beat, as we discuss below, and as a result we revise our 2026 estimates up by 17% and our 2027 estimates up by 12% on the back of higher fees and NIM. We are now 12% above consensus for both years. Higher-for-longer rates in Colombia have been very powerful for CIB, and NIM and fee resiliency may continue to benefit the company in the coming quarters. While some margin tailwinds were expected, the magnitude of them has been stronger. We also see tailwinds on: (1) Nequi on the digital front; (2) more focus on payroll lending post recent M&A which may drive more growth ( link); (3) Central American operations improving; (4) cost to income improvement as the 48% guidance, despite improving 1 p.p., still appears conservative (we have it at 46% level). All in all, we are more bullish than the company’s revised guidance of 21–22% ROE for this year (we have 22.5%). Despite the more stable rates, we see further improvement in 2027 towards 23% ROE. We see a lower long-term ROE of 20% (vs. prior 18%) reflecting rate normalization, but this still supports an appealing valuation. Higher LT ROE, higher EPS in next years, stronger COP and marginally lower CoE in addition to PT rollover help us to establish a Dec-27 price target of US$110/ADR.”

For an analyst ratings summary and ratings history on Grupo Cibest click here. For more ratings news on Grupo Cibest click here.

Shares of Grupo Cibest closed at $91.47 yesterday.

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