Analyst Chris Hallam from Goldman Sachs maintained a Buy rating on Banco Santander and increased the price target to €12.60 from €11.10.
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Chris Hallam has given his Buy rating due to a combination of factors tied to Santander’s new 2026–2028 plan and capital framework. Management is targeting a post-AT1 ROTE above 20% by 2028, underpinned by net profit exceeding €20bn, driven by the One Transformation program and recently announced M&A transactions.
The bank also plans to grow revenues at a mid-single-digit pace in constant euros, with low- to mid-single-digit NII growth and stronger fee income, while reducing annual costs below €27bn and keeping cost of risk broadly stable. Over 2026–2028, Santander expects to generate more than €50bn of capital, combining a 50% ordinary payout with additional distributions of surplus capital above a 13% ratio, supporting an attractive total shareholder return profile.
Hallam covers the Financial sector, focusing on stocks such as Deutsche Bank AG, Banco Santander, and Banco Bilbao Vizcaya Argentaria. According to TipRanks, Hallam has an average return of 27.9% and a 77.72% success rate on recommended stocks.
In another report released yesterday, Deutsche Bank also maintained a Buy rating on the stock with a €11.50 price target.