Credit Suisse raises the target price of Santander and CaixaBank and maintains that of BBVA

MADRID, 10 Oct. (EUROPA PRESS) -

Credit Suisse analysts have raised the target price for both CaixaBank and Santander and have maintained BBVA's, while reiterating their preference for CaixaBank among the banks in southern Europe.

On Monday, the firm published its latest reports on Santander, BBVA and CaixaBank, as well as a report on the outlook for banks in southern Europe, after updating its forecast for rising interest rates in the euro zone, with a forecast of 75 , 75, 50 and 25 basis points in the October, December, February and March meetings, respectively.

Analysts at Credit Suisse have raised Banco Santander's price target to €4.10, from €4 per share, and have maintained their overweight recommendation.

"We continue to see higher net interest income upside amid monetary tightening in emerging and developed markets, ultimately driving a 3% increase in our 2022-2024 net profit forecast," Credit Suisse said. in his report on Santander.

As for BBVA, the firm has maintained its neutral recommendation and its target price at 5.20 euros per share. Credit Suisse analysts continue to appreciate the potential for top-line growth in Spain and Mexico, in the face of persistent uncertainty in Turkey.

"We see further top line growth in Spain and Mexico driving increases of 3% and 8% in our earnings per share estimates in 2022 and 2023, respectively. However, we continue to point to limited visibility into Turkey's outlook" analysts have pointed out.

Likewise, Credit Suisse has maintained the recommendation to overweight CaixaBank, but has increased its target price to 4.20 euros per share, from 3.90 euros, as it understands that the bank is very sensitive to interest rates, which will allow a interest margin increase of 6% and 10% in 2022 and 2023.

Analysts have stressed that its retail deposits will allow for an encouraging widening of customer spreads. In addition, they consider that the increase in sovereign yields should contribute to CaixaBank's interest growth.

"While we recognize downside risks to asset quality stemming from a deteriorating macroeconomic outlook, we believe the bank's strong gross income growth and conservative provisioning position should more than offset cost of risk pressures. ", they have pointed out in the report published this Monday.

In their report on banks in southern Europe, Credit Suisse analysts have reiterated their preference for CaixaBank, considering that it is "one of the most resilient banks in southern Europe". In his opinion, CaixaBank will benefit from its sensitivity to interest rates, its "solid" capital buffers, its "comfortable" provisioning position and its "conservative" risk allocation.