Analyst Alvaro Serrano from Morgan Stanley reiterated a Buy rating on Banco Santander and keeping the price target at €9.50.
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Alvaro Serrano has given his Buy rating due to a combination of factors that reflect Banco Santander’s strong financial performance and strategic positioning. The bank’s net profit exceeded expectations by 2%, supported by in-line revenues and reduced costs and provisions, despite facing higher legal provision charges. This indicates effective cost management and resilience in challenging conditions.
Additionally, Banco Santander’s capital strength is evident with a CET1 ratio of 13.1%, showing improvement despite some model headwinds. The bank’s performance in key regions, such as Spain and the US, was robust, with no deterioration in asset quality in Brazil or the US, which had been a concern. The reaffirmation of the 16.5% ROTE guidance further underscores the bank’s potential for sustained profitability, making it an attractive investment opportunity.
According to TipRanks, Serrano is a 4-star analyst with an average return of 5.4% and a 50.63% success rate. Serrano covers the Financial sector, focusing on stocks such as Barclays, Lloyds Banking, and NatWest Group.
In another report released on October 27, Citi also maintained a Buy rating on the stock with a €9.60 price target.