Tuesday, November 30

Caixabank is the cheapest bank on the IBEX 35


The consensus continues to update its metrics on the listed companies after knowing the results of the first nine months of the year and in the case of the IBEX 35 bank Caixabank it is placed as the cheapest for the next 12 months based on the PER.

The PER is the ratio that measures the market price of a share and the benefits it obtains year after year. It is very followed by investors to gauge whether a security is attractive by price and, according to this metric, the lower the PER, the cheaper the security.

Caixabank already has the most attractive PER of the bank of the main selective of the Spanish Stock Exchange 3.52 times, but the one-year projections suggest that, Despite increasing it to 6.54 times, it will continue to be the lowest in the sector.

Banco Santander, in second place

After the Catalan entity is placed Santander Bank with a PER of 10.13 times today, which will drop to 7.28 times in the next 12 months.

BBVAThird, you will also see how your price appeal will improve up to 9.66 times over a year from the 10.92 times you currently project.

Bankinter, with a current rate of 11.90 times, it would reduce it in one year to 11.80 and the greatest decrease will be recorded by Banco Sabadell.

The Catalan bank currently has the highest PER, 22.21 times, and the highest in the next 12 months despite the fact that it would reduce it to 12.84 times.

Caixabank, greater potential and less advice to “sell”

The price appeal of Caixabank is also linked to the fact that it is the IBEX 35 entity with the greatest potential after adjusting investor positions and changes in the target price of investment entities.

By trading above 2.05 euros and having an average one-year target price of 2.48 euros, shows an appreciation potential close to 25 percent. On the other hand, it also has the fewest “sell” tips among its peers.

57.7 percent of the consensus collected by the panel of experts from Bloomberg recommends “buying” shares and 28.5 percent prefer to “hold” portfolio positions. A) Yes, the remaining 3.8 percent urges to “sell” the securities.

The Bankia merger continues to bear fruit

These consensus assessments are produced after closing the first nine months of the year with a profit of 4,801 million euros, almost seven times more than in the same period of the previous year.

The figure is explained by the capital gains generated by the absorption of Bankia by computing 2,799 million euros positive after subtracting a contribution of 4,300 million euros for the negative goodwill, the disbursement of 1,521 million euros for the ERTE and other expenses of lower amount.

Sin Bankia, eAdjusted net profit is 2,022 million euros, three times more than from January to September 2020.

Core revenues, those that measure the pure banking business, grew by 25.2 percent, to 7,708 million euros and the interest margin grew by 21 percent, to 4,416 million.

Caixabank’s profitability measured by the ROTE and excluding extraordinary items stood at 9.6 percent at the end of September.



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