Banco Sabadell shares led the advances of the IBEX 35 on Monday after receiving several purchase recommendations and touched 0.7 euros, the highest in October.
In a context of high interest rates and especially favorable for banks, economists at HSBC Y JB Capital Markets advised to buy the shares of Sabadell Bank.
In the British firm they set a target price of 0.85 euros, which shows an upward potential of 23 percent. In the Spanish broker they went further and calculated 0.9 euros per share, with a possible return of 30 percent compared to current prices.
The group that leads César González-Bueno It has just had the best year in its history on the stock market, but it has fuel to continue recovering levels. For technical analysts, reaching 0.9 euros is far from a pipe dream.
Wave of optimism in Banco Sabadell
The latest analysis houses that reviewed the perspectives of Banco Sabadell are clear that the panorama has changed.
Thus, in HSBC moved from a ‘hold’ rating to a ‘buy’ rating, after calculating a rapid improvement in return on tangible equity (ROTE) due to better cost control.
According to these experts, Spanish banking in general will still have to face the moderate growth in loans and the greater pressure on margins.
The Catalan entity will not escape this trend and will report a 2 percent drop in the group’s interest margin in its results on January 27, according to calculations by Bloomberg Intelligence.
However, Banco Sabadell will be favored by “a better evolution of the net interest income in the United Kingdom”, they pointed out in HSBC, a market in which TSB has already begun to bring joy.
To the group of optimistic brokers was added JB Capital Markets, whose experts had the bank with a note of remaining neutral since last May. Now, they calculate a rebound potential of 30 percent and recommend ‘buy’.
TSB, target of the glances
There are several factors that led to the brilliant stock market year of Sabadell Bank and compensated for the disappointment after the breakdown of the merger with BBVA.
Among them are the return to the cash dividend or the strategic plan deployed by the entity, as finances.com has been explaining.
However, nothing concentrates as much interest for analysts as the future of TSB, which will once again be the main topic in the next results.
Although managers have rejected the possibility of selling the British subsidiary in the short term, “we believe a sale may be on the table” once progress on the restructuring has been made, analysts at Bloomberg Intelligence said on Monday.
“It is still on the table due to the possibility of obtaining a liquidity peak, but it has returned to profits and represents an important weight for the results of the parent company, so in the short or medium term I do not think it is on the sheet from the bank,” he said. Dario Garcia, XTB analyst, on the prospects of the British subsidiary.
Sabadell, with 0.74 euros in the spotlight
In the short term, the price of Banco Sabadell has just confirmed a continuation pattern and is attacking the resistance located between 0.69 and 0.74 euros, he said Josep Codina, director of analysis of INVESTMENT and finance.com.
The attack on this zone of 0.74 euros “is possible, given the succession of increasing lows that supports the bullish structure”, he agreed. Garcia.
In this way, if it exceeds the zone of 0.75 euros, “there would be practically no more resistance until 0.9 euros, with which the attack on the euro could be on target”, he stressed. Codina.
In case there are setbacks, the experts consulted by Finanzas.com pointed out that it would be important for the price not to lose the support of 0.65 euros.