Bladex: BBB+ Upgrade, Cleaner Credit, Still Cheap

Bladex is rated buy with a $66 fair value, offering 12% upside and a near 5% dividend yield. BLX remains the cheapest Latin American bank peer on both earnings and book value, despite a 46% price increase over the past year. Short-duration credit books, improving fee income, and a recent BBB+ rating upgrade support a robust, less rate-dependent earnings profile. Key risks include net interest margin compression below 2.25% and potential credit deterioration, but capital strength and liquidity provide a margin of safety.

I rate Bladex, Inc. ( BLX ) a Buy as it trades only a few percent away from its all-time high and has increased about 46% in the year. My fair value estimates are around $66 per share with a recent price of $58.60.