BofA Revises Price Objective, Estimates for Banco Santander Amid Expectations of 'Solid' Q2 Results
BofA Global Research updated its price objective and earnings forecasts for Banco Santander (SAN.MC, BNC.L) to reflect recent operating trends and the Spanish lender's restatement, ahead of what the research firm anticipates will be a "solid" second quarter. In an earnings preview note for Spanish banks published Wednesday, analysts raised their net interest income and fees estimates by 3% and 4% to 5%, respectively, for full-year 2026 through 2027. BofA's net profit forecasts were also boosted by 2% to 5% for 2027 to 2028, with 2027 EPS projections lifted by 4% on a higher share count. "We also see further room for cost savings by 2028e as synergies from M&A transactions and standalone initiatives are achieved," the research firm wrote. "Our [dividend per share] is also materially higher as we reflect improved distribution mix." Against this backdrop, BofA increased its price objective to 13.8 euros from 11 euros and lifted its American depositary receipt price objective to $15.78 from $13.80. "Santander trades at an undemanding valuation. Its Brazilian unit (c.20% of earnings) comes with higher for longer SELIC rates. Santander's funding is largely tied to the SELIC,.
BofA Global Research updated its price objective and earnings forecasts for Banco Santander (SAN.MC, BNC.L) to reflect recent operating trends and the Spanish lender's restatement, ahead of what the research firm anticipates will be a "solid" second quarter.
In an earnings preview note for Spanish banks published Wednesday, analysts raised their net interest income and fees estimates by 3% and 4% to 5%, respectively, for full-year 2026 through 2027.
BofA's net profit forecasts were also boosted by 2% to 5% for 2027 to 2028, with 2027 EPS projections lifted by 4% on a higher share count. "We also see further room for cost savings by 2028e as synergies from M&A transactions and standalone initiatives are achieved," the research firm wrote. "Our [dividend per share] is also materially higher as we reflect improved distribution mix." Against this backdrop, BofA increased its price objective to 13.8 euros from 11 euros and lifted its American depositary receipt price objective to $15.78 from $13.80. "Santander trades at an undemanding valuation.
Its Brazilian unit (c.20% of earnings) comes with higher for longer SELIC rates.
Santander's funding is largely tied to the SELIC,.