The investment bank has downgraded its rating from neutral to underweight for Banesto and Banco Pastor
The US firm JPMorgan published a pessimistic report on Spanish banks. It has revised its recommendations and target prices for these institutions downwards and cut its earnings per share forecasts by between 15% and 20%. Specifically, it anticipates a 19% decline for Bankinter, followed by Pastor (18,3%), Banesto (14,7%), Sabadell (11,1%), and Popular (10,8%). The firm expects similar reductions in the coming years.
In this regard, the investment bank has downgraded its rating from neutral to underweight for Banesto and Banco Pastor. The target price for the bank chaired by Ana Patricia Botín has been reduced from €17 to €14,2, a decrease of 16,47%, while the estimate for Banco Pastor is €12,6, a 21,25% decrease from the previous €16. Meanwhile, the other mid-sized banks in the Spanish market have fared no better. JPMorgan recommends underweighting Banco Popular, with a target price of €12,1, Bankinter, with a target price of €9,7, and Banco Sabadell, with a target price of €6,9.
JPMorgan favors the two major Spanish banks, Santander and BBVA, due to their diversified businesses and strong market positioning. It maintains its overweight rating on these stocks, citing their attractive valuations. Santander is the preferred bank because of its ongoing acquisition of ABN Ames.
Any questions about this news?
Talk to Coexia, the AI of the foreign trade
