Alvaro Serrano, an analyst from Morgan Stanley, maintained the Buy rating on Banco Santander (BNC – Research Report). The associated price target remains the same with €7.40.
Alvaro Serrano has given his Buy rating due to a combination of factors that highlight Banco Santander’s strategic positioning and financial resilience. The bank’s leadership, including Executive Chairman Ana Botin and Group CFO José García Cantera, emphasized their commitment to simplifying regulation and maintaining a strong capital position with a target CET1 ratio of 12%, aiming for 13% by 2025. This focus on capital productivity and realistic management of capital headwinds reflects a disciplined approach to financial stability.
Additionally, Santander’s strategy for capital distribution prioritizes organic growth and regular distributions, with a cautious approach to inorganic growth through financially attractive bolt-on acquisitions. The bank’s plan to evolve into a digital bank with branches aims to streamline operations and leverage automation for cost efficiency, particularly in larger markets. Furthermore, Santander’s strategic management of interest rate sensitivity in Brazil and its focus on improving the US Consumer business through cost-effective funding solutions underscore its potential for growth and profitability, supporting Serrano’s positive outlook.
Serrano covers the Financial sector, focusing on stocks such as AIB Group, Nordea Bank Abp, and Unicaja Banco SA. According to TipRanks, Serrano has an average return of 5.4% and a 52.82% success rate on recommended stocks.
In another report released on March 10, Citi also maintained a Buy rating on the stock with a €7.20 price target.