JPMorgan’s securities analysis division indicated that Banco Sabadell is the best investment choice among Spanish and Portuguese listed banks, according to a report published yesterday.
The Wall Street firm indicated that the Catalan entity is “attractive”, taking into account a return on tangible capital (RoTE) of 8% and a dividend yield of 6% by 2025, according to its estimates.
Despite this positive view, JPMorgan warns of possible downside risks in the event that interest rates are lower than expected, that financing costs grow more than forecast or that there is an unexpected macro deterioration in the future. short term.
If one only looks at the forecasts for the income statement for this year, CaixaBank is the bank that is most likely to grow. Specifically, JPMorgan expects its income to grow by 17%, to around 13,500 million, while its benefits will rise by 29%, to just over 4,000 million.
The forecasts are positive for the rest of the entities. Santander’s revenues will grow by 7.3%, to almost 56,000 million, while those of BBVA will stand at 28,400 million, 14.2% more, and those of Sabadell will reach almost 5,900 million, 13.8% more . Bankinter will observe a growth of 17.4%, up to just over 2,400 million.
Regarding profits, Santander will reach 9,700 million, the highest figure of all Spanish banks, although with the slightest growth, barely 1%. Behind will be BBVA, with profits of 7,200 million, 12.6%; while Sabadell will earn 1,100 million, 28.3% more, and Bankinter will close this year with a net result of 700 million, 25% more.
As regards the target price, Sabadell is the one with the most upward travel for JPMorgan, with a revaluation of 32.14% towards the end of 2024.
Specifically, the Catalan bank will be able to reach a price of 1.55 euros per share. In second place in revaluation is CaixaBank, with an increase of 20.7%, to 4.75 euros, while Santander could reach 4.2 euros (+19.3%) and BBVA, 8.1 euros (+15.2%).
Only Bankinter, among the large Spanish banks, which are those analyzed by JPMorgan, shows a negative return for the next two years, reaching 6.4 euros by the end of 2024, 1% below its current price.