ING: Solid Fundamentals and Capital Returns but Limited Upside Keep Shares Fairly Valued at Hold

Analyst Tarik El Mejjad of Bank of America Securities maintained a Hold rating on ING GROEP, with a price target of €25.70.

Tarik El Mejjad has given his Hold rating due to a combination of factors related to ING’s solid current performance but limited upside versus expectations and valuation. He notes that ING’s updated 2026 and 2027 targets largely match market consensus, with return on tangible equity and capital ratios in line, and revenue, cost, and tax guidance only marginally different from what is already priced in. While revenue targets by component (commercial NII, fees and other income) and cost guidance appear well controlled, they do not materially improve the consensus earnings outlook.

At the same time, the latest quarterly results were operationally strong, with net profit about 5% ahead of expectations thanks to slightly higher revenues and better cost control, and asset quality remaining sound despite somewhat higher provisions. Capital remains robust with a CET1 ratio around the 13% target and a supportive shareholder return profile, including a healthy dividend and potential share buyback. However, El Mejjad judges that at roughly 9.8x forward earnings and 1.35x price to tangible book for an anticipated 14% ROTE in 2027, the shares already reflect these positives, leaving only modest room for further re-rating. As a result, he maintains a Neutral/Hold stance, seeing the stock as fairly valued with limited earnings and valuation surprise potential in the near term.

According to TipRanks, El Mejjad is ranked #4694 out of 11984 analysts.

In another report released on January 27, Jefferies also maintained a Hold rating on the stock with a €27.00 price target.