Banco Santander published its accounts for the first quarter on Wednesday and, if the market consensus of Bloomberg, it can be said that they were a success. The Cantabrian entity has harvested today until seven valuation enhancements. Consequently, there are already four analysts who see their shares trading above 4 euros in the short term.
Santander announced early yesterday that its profit in the first quarter of 2021 was 1,608 million. Some numbers that exceeded the expectations that experts had before the balance sheet was published.
Nuria Álvarez, Renta 4 analyst, highlighted last day “the good operating dynamics” of the bank, as well as the “growth in volumes and net interest income, the improvement in the cost of risk and cost control” throughout the first three months of the year.
“Son some good results that they should raise the price of their shares “, said the experts of the British bank Barclays. And so it was: the titles scored a rise of 2.7%. This despite the fact that on Tuesday they already anticipated the good with a 5% rebound.
However, Banco Santander does not seem to have a brake on the stock market. This Thursday its shares add up to six positive days in which they have appreciated more than 13%. Its price has reached 3.2 euros, highs since early March 2020 (that is, since before crash coronavirus).
What is the reason for this rise of the financial group on the floor? Partly because of the increased backing from experts he’s getting, especially after publishing his quarterly balance sheet. Today you have seen how seven analysis houses have improved the target price they give to their titles.
One of them has been precisely Barclays, claiming that Santander’s income, cost control and asset quality “are improving”, as stated in a report collected by Europa Press.
In addition to the British bank, the consensus of Bloomberg collects valuation improvements by Alphavalue, HSBC, Mediobanca SpA, Société Générale, Alantra Y Keefe, Bruyette & Woods.
Goldman Sachs sees 35% travel
The best opinions of the latter two (Alantra and Keefe, Bruyette & Woods) stand out especially, since they have raised the target price of Santander to 4 and 4.10 euros, respectively.
Consequently, there are already four firms that see the bank chaired by Ana Botín trading at or above the psychological barrier of 4 euros. This supposes a travel of at least 25% in the short term from current listing prices.
Goldman Sachs experts are the most optimistic, giving Banco Santander a target price of 4.30 euros (or a potential close to 35%).
Taken together, the market consensus of Bloomberg gives the company a twelve-month average target price of 3.33 euros per share, which implies a potential of 5% in the next year.
More than half of the analysts included in said consensus (16 or 51.6%) give a ‘buy’ recommendation, while 35.5% choose to ‘hold’ and a minority (four firms or 12.9 % of the total) opts for ‘sell’.