BofA Downgrades BBVA to Neutral on Turkey Macro Uncertainty; Price Objective, Estimates Revised
BofA Global Research downgraded Banco Bilbao Vizcaya Argentaria (BBVA.MC, BVA.L) to neutral from buy, saying high rates are delaying normalization in Turkey. "BBVA has an enviable quality franchise with solid market shares in Mexico, Türkiye and Spain. Mexico is a large c.60% of BBVA's group profits, and while some trade uncertainty remains after the July 1st [United States-Mexico-Canada agreement] non-extension, operating trends are resilient. However, the main delta to consensus is Türkiye and current macro trends affect our investment thesis," according to a Wednesday earnings preview note for Spanish banks. The research firm's price objective and earnings forecasts were revised to account for updated currency and operating trends. BofA's price objective was raised to 25 euros from 24.3 euros. Analysts' net interest income and fee projections were increased by 1% to 4% for the full-year 2026 to 2028 period, while their net profit forecasts were lifted by 2% for 2027 and trimmed by 2% for the following year. BofA also boosted its cost and loan loss provision expectations, primarily driven by upward revisions to inflation and interest rate forecasts in Turkey. Copyright ©.
BofA Global Research downgraded Banco Bilbao Vizcaya Argentaria (BBVA.MC, BVA.L) to neutral from buy, saying high rates are delaying normalization in Turkey. "BBVA has an enviable quality franchise with solid market shares in Mexico, Türkiye and Spain.
Mexico is a large c.60% of BBVA's group profits, and while some trade uncertainty remains after the July 1st [United States-Mexico-Canada agreement] non-extension, operating trends are resilient.
However, the main delta to consensus is Türkiye and current macro trends affect our investment thesis," according to a Wednesday earnings preview note for Spanish banks.
The research firm's price objective and earnings forecasts were revised to account for updated currency and operating trends.
BofA's price objective was raised to 25 euros from 24.3 euros.
Analysts' net interest income and fee projections were increased by 1% to 4% for the full-year 2026 to 2028 period, while their net profit forecasts were lifted by 2% for 2027 and trimmed by 2% for the following year.
BofA also boosted its cost and loan loss provision expectations, primarily driven by upward revisions to inflation and interest rate forecasts in Turkey.
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