Monday, November 29

Banco Santander: the market sees an escalation possible to the highs of 2019

Analysts see possible the escalation of the shares of the Santander Bank up to its highest in the last two years thanks to the new guide offered by the entity.

The bank that runs Ana Botín its profit shot up to September to 5,849 million euros compared to losses of 9,000 million in the first nine months of 2020. Santander also said that it would “significantly” exceed its profitability targets.

After presenting their accounts, the investment bank was optimistic with the potential of the shares, which now stands at 17 percent according to the consensus consulted by

A revaluation that yields a target price of 3.86 euros, Santander’s highest level on the IBEX 35 since the end of July 2019.

Target price improvements

In 2021, the bank’s securities add up to about 30 percent, so it would continue the path of double-digit earnings according to the panel of experts.

Last week, when Santander released its figures through September, a large number of analysts raised their forecasts on the bank’s course on the stock market.

Signatures like Alantra, Credit Suisse and Oddo they raised their target price by 0.20 euros, driven by the movements announced by the group.

At the beginning of October, Santander announced a share buy-back plan of up to a maximum of 9.7 percent of equity capital, which served as a claim for investors.

It also opened the door to the dividend, which began to be effective from this Tuesday. In total, it will distribute 840 million euros in cash, which represents a payout of 40 percent.

“Third quarter attributable profit was above consensus. The bank says it is on track to exceed its fiscal year targets, so we believe stocks will trade positively thanks to improved earnings, outlook and capital, ”explains Fernando Gil, analyst responsible for the latest report from Barclays, another of the entities that raised the target price of Santander by 0.20 euros.

Potential to beat 2018 levels

Although the potential of Santander has increased, many analysts even consider that the shares have the wood to reach the threshold of 4 euros, so it would consolidate even more at 2019 levels.

Signatures like Mediobanca, DZ Bank about Kepler they set their target price in this environment last week.

More optimistic were the analysts of Alphavalue, Barclays o HSBC, which raised the potential to a range of between 4.30 and 4.54 euros.

If this rise occurs, stocks would not only recover their pre-pandemic highs, but would reach their highest level since the summer of 2018.

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