Itau Unibanco Holding S.A. (NYSE:ITUB) has been downgraded by Citigroup on October 25 which now rates the stock as Neutral compared with Buy rating suggested in the past. Analysts at JP Morgan, shed their positive views on July 12 by lowering it fromOverweight to Neutral. The stock won favor of Goldman analysts who expressed their confidence in it using an upgrade from Sell to Neutral on July 20. HSBC Securities analysts came out with bearish views on June 02 when the call was made. They think the stock is now Hold compared to to their prior call for Buy.
Itau Unibanco Holding S.A. (ITUB) hit an intraday high Friday at $9.435. The shares finished at $9.33, after trading as low as $9.27 earlier in the session. It dropped -0.11% in recent trade and currently has a stock-market value of $85.51B. Trading activity significantly weakened as the volume at ready counter decreased to 11,658,361 shares versus 18,652,059 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 19,606,689 shares. The stock is now 4.48% above against its bear-market low of $8.93 on September 13, 2018. It has retreated -21.33% since it’s 52-week high of $11.32 reached in January. Now the market price is down -20.99% on the year and down -24% YTD.
ITUB’s 50 day simple moving average (SMA 50) price is $8.59 and its 200-day simple moving average (SMA 200) price is $8.51. The company’s stock currently has a total float of 5.29B shares. Its weekly volatility is hovering around 3.07% and felt 2.58% volatility in price over a month. On the upside, the share price will test short term resistance at around $9.42. On a downside, the stock is likely to find some support, which begins at $9.26. The failure to get near-term support could push it to $9.18.
Wall Street’s most bullish Itau Unibanco Holding S.A. (NYSE:ITUB) analysts are predicting the share price to blow past $11.36 per share during the next 12 months. The current median share price forecast by them is $9.06, suggesting that the stock could increase -2.89% in that time frame. The average price target of $8.97 calls for a nearly -3.86% increase in the stock price.
When looking at valuations, Itau Unibanco Holding S.A. (ITUB) has a cheap P/E of 14.81x as compared to industry average of 18.6x. Moreover, it trades for 11.92 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 2.69x price/book and 2.5x price/sales. Compared to others, Itau Unibanco Holding S.A. is in a different league with regards to profitability, having net margins of 18%. To put some perspective around this, the industry’s average net margin is 33.03%. ITUB’s ROE is 18.6%, which is also considerably better than the industry’s ROE of 16.94%.
ITUB last reported earnings on October 29, 2018 when it released Sep-18 results that receded expectations. The company raked in $0.25 per share, -85.71% change on the same period last year. That was worse than consensus for $0.26. Revenue for the recent quarter stood at $7.07 billion, down -17% on last year and below the $7.15 billion predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $7.54 billion to $7.54 billion, which should be compared with $0 generated last year. EPS is seen in a range of $0.27 to $0.28, against the $0.25 reported a year ago.