Assessing Bladex (NYSE:BLX) Valuation After Recent Share Price Momentum And Fair Value Discount

Find winning stocks in any market cycle. Join 7 million investors using Simply Wall St’s investing ideas for FREE.

Banco Latinoamericano de Comercio Exterior S. A (BLX) has recently attracted investor attention after a strong run in its shares, with the stock closing at $51.17 and posting a 3% move over the past day.

That short term gain sits alongside returns of about 4.6% over the past week, a 17.4% move over the past month, and a 15.8% gain in the past 3 months, putting recent performance clearly on investors’ radar.

See our latest analysis for Banco Latinoamericano de Comercio Exterior S. A.

That short term momentum sits alongside a year to date share price return of 16.8% and a 1 year total shareholder return of 42.9%. This may hint that enthusiasm around Banco Latinoamericano de Comercio Exterior S. A is building rather than fading.

If this move has you thinking about where else capital is flowing, it could be a good time to scan our 23 top founder-led companies as another source of ideas.

With Banco Latinoamericano de Comercio Exterior S. A trading at $51.17, sitting at an estimated 44.3% discount to one intrinsic value estimate and below a US$55.50 analyst target, is there still a buying opportunity here, or is the market already pricing in future growth?

At $51.17, Banco Latinoamericano de Comercio Exterior S. A sits below a widely followed fair value estimate of $55.50, which is built on detailed revenue, margin and earnings assumptions extending to 2028.

The rollout of a new digital trade finance platform positions Bladex to significantly increase transaction volumes, improve client retention, and expand service offerings to underbanked SMEs, which should drive fee income, boost revenue growth, and enhance operational efficiency over the coming 18 months.

Read the complete narrative.

Curious what sits behind that $55.50 figure? The narrative leans heavily on mid single digit revenue compounding, high margins and a future earnings multiple that stays below many peers. Want to see how those pieces fit together and what assumptions do the heavy lifting? The full narrative lays out every step.

Result: Fair Value of $55.50 (UNDERVALUED)

Have a read of the narrative in full and understand what’s behind the forecasts.

However, that story could change if large one off deals like Staatsolie fail to repeat or if regional sovereign stress affects asset quality and earnings volatility.

Find out about the key risks to this Banco Latinoamericano de Comercio Exterior S. A narrative.

If you are not fully convinced by this storyline or simply prefer to test the numbers yourself, you can build a custom view in just a few minutes: Do it your way

A great starting point for your Banco Latinoamericano de Comercio Exterior S. A research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

If you are serious about finding your next opportunity, do not stop with one stock. Use the screener to see where the data is pointing right now.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include BLX.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com