Banco Santander’s US-listed stock has stood out in the banking and finance sector so far this year.
The Spanish bank has risen by a strong 30 percent since the new year, and is thus on its way to its best year since 2009, writes CNBC. At the time, the stock rose a whopping 73 percent.
Bank of America believes that the increase this year should be doubled. Analyst Antonio Reale says the bank can build on this year’s upturn, and believes it is traded at a relatively low valuation.
– Santander is a global bank and has kept product factories within the group; this has a value that we believe is not sufficiently reflected in the valuation. Products such as payments and consumer finance give the group scale and scope, Reale believes.
Exceeded expectations
The analyst therefore repeats the buy recommendation, and adds that the share is his top choice in Spain. With a price target of 5.09 dollars per share is upside of more than 28 percent, writes CNBC.
In comparison, the US’s largest banks, JP Morgan Chase and Wells Fargo, have respectively risen 14 and 5 percent so far this year. Citigroup, Goldman Sachs and the brokerage itself, Bank of America, have all weakened in 2023.
However, Santander had a weak year last year, when the share fell 10 per cent. In the last five years, there has been a decline in four of them, according to CNBC.
Last quarter, the 166-year-old bank managed to exceed analysts’ expectations, with both interest and trading income exceeding estimates.
2023-08-13 12:01:58
#Santander #crushed #competitors #cent #predicted
