A recent report by JP Morgan highlights Argentina and Turkey as promising investment destinations, projecting returns exceeding 20% for 2025. Economic stability and the continuity of reforms are seen as fundamental for the growth of these markets, which are valued at attractive levels compared to other emerging markets.
The international outlook on Argentina and Turkey is more optimistic than the local perspective, according to JP Morgan, marking a shift from 2024, when pessimism prevailed. The report indicates that the success of both countries will be linked to their ability to maintain economic reforms and overcome structural challenges.
Regarding Turkey, investment opportunities are identified in companies such as BIM, Akbank, Turkish Airlines, and Migros. In the case of Argentina, the report highlights bullish drivers beyond macroeconomic stabilization, such as the potential utilization of the country's natural resources and the government's orientation towards economic growth and the strengthening of the private sector in 2025.
JP Morgan analysts point out that Argentina and Turkey share key factors, such as combating inflation and the lag in their financial assets, positioning them as emerging markets with high potential. It is emphasized that the lifting of capital controls in Argentina and the continuity of reforms in Turkey are key drivers of optimism for both markets.
In terms of valuation, Argentina is trading at 9 times its price-earnings ratio, while Turkey is at 7 times, compared to the average of 12 times for emerging markets. JP Morgan projects that both markets could achieve returns of more than 20% in 2025, provided they maintain their well-developed reforms and convince investors of their long-term strength.
