The investment bank published a report stating that Argentine stocks remain cheap even after the historic post-election rally
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JP Morgan, one of the world's leading investment banks, issued a report reaffirming its positive outlook on the Argentine economy. Despite the strong stock market rally following the legislative elections, the institution believes that local stocks still have significant upside potential.
The document highlights that La Libertad Avanza's victory consolidated political stability, strengthening the Government's position and eliminating institutional risk. According to the bank, the ruling coalition together with PRO holds one third of the votes in both chambers, which ensures governability and predictability.
The S&P Merval rose by 50% after the elections, and some stocks—mainly banking stocks—doubled in value since September. Nevertheless, JP Morgan asserts that prices remain attractive in key sectors such as energy and finance.
Declining inflation, surplus, and confidence in management
The report praises President Javier Milei's economic policy, highlighting the sustained decline in inflation, the fiscal surplus, and the reduction in country risk. It also celebrates the gradual removal of currency controls and the high level of presidential approval, which remains above 40%.
For 2026, JP Morgan projects inflation of just 11.8%—even lower than the IMF's estimate—and GDP growth of 3%. In its view, the Argentine economy could accelerate sharply from the second half of 2026, with a 4.5% rebound in the last quarter.
JP Morgan ve un fuerte potencial en las acciones argentinas y destaca la solidez del Gobierno de Javier Milei
Stocks with great potential and Argentina's return to the markets
The report emphasizes that, after the latest increase, the Argentine market is trading at 9.7 times its annual earnings, well below the 13.3 times observed during Mauricio Macri's government, when global investors were strongly betting on the country.
JP Morgan estimates that, if Argentina manages to move forward with the full liberalization of the capital market, it could return to the MSCI emerging markets index, which would generate automatic inflows of up to USD 2.6 billion in foreign investment.
Among the companies with the greatest potential are Banco Macro and Galicia (both with 50% upside), YPF (32%), and Vista Energy. Pampa Energía, TGS, BBVA, and Central Puerto are also among those most favored by global optimism.
JP Morgan ve un fuerte potencial en las acciones argentinas y destaca la solidez del Gobierno de Javier Milei
A vote of confidence in the liberal direction
JP Morgan's analysis reflects explicit support for Javier Milei's economic direction, marked by fiscal discipline, trade openness, and regulatory predictability. Analysts agree that Argentina is undergoing an economic normalization process that improves its international profile and creates historic opportunities for investors.
In terms of external confidence, the report is a clear signal: global markets are betting on Milei's Argentina.
