Banco Macro S.A. (BMA): A Bull Case Theory

We came across a bullish thesis on Banco Macro S.A. on Jeremie Boyer’s Substack. In this article, we will summarize the bulls’ thesis on BMA. Banco Macro S.A.'s share was trading at $71.99 as of July 30^th. BMA’s trailing P/E was 3.82 according to Yahoo Finance.

Banco Macro (BMA) appears poised for a valuation re-rating as profitability normalizes, supported by accelerating loan growth, recent share buybacks, and a strong brand-driven retail presence. The bank holds a dominant 74% branch share in Argentina’s high-growth interior provinces, positioning it to benefit disproportionately from any rebound in real credit demand as interest rates fall. This provincial SME lending footprint is a structural advantage, particularly in a rising-rate or recovery environment.

With a Common Equity Tier 1 (CET1) ratio above 25%, BMA enjoys significant capital flexibility, enabling it to simultaneously fund loan expansion and conduct additional share repurchases without compromising regulatory buffers. Its brand equity is also surging—BMA was ranked #4 in the Brand Finance Argentina 10 (2025) and named the fastest-growing brand in the country, with a 114% year-over-year increase in brand value to $622 million.

This visibility strengthens deposit stickiness and customer loyalty, both of which are critical in a volatile macro environment. Earnings also exhibit high sensitivity to net interest margin (NIM) recovery; every 100 basis point increase in NIM translates to approximately $0.25 in incremental EPS per ADR, providing substantial operating leverage to any normalization in monetary conditions.

The brand’s reputational strength places it firmly in the “A-Tier” of Argentine banks, correlating with better deposit stability, pricing power, and competitive resilience. Taken together, these dynamics support a base-case price target of $95–100 per ADR as earnings normalize. With multiple embedded levers for upside, BMA offers a compelling risk-reward profile for both equity and credit investors.

Previously, we covered a bullish thesis on Northeast Bank (NBN) by Rock & Turner in May 2025, which highlighted the bank’s opportunistic loan acquisitions, exceptional credit quality, and disciplined capital deployment. The company’s stock price has appreciated by approximately 17.77% since our coverage. This is because the bank’s differentiated model began reflecting in valuation. The thesis still stands as NBN’s profitability remains scalable. Jeremie Boyer shares a similar view but emphasizes provincial scale and NIM-driven earnings torque in Banco Macro (BMA).

Banco Macro S.A. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 16 hedge fund portfolios held BMA at the end of the first quarter which was 18 in the previous quarter. While we acknowledge the potential of BMA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.