ABN Amro Price Target Up as RBC Notes 'More Confidence' on ROE Target Delivery
RBC Capital Markets lifted its price target for ABN Amro Bank (ABN.AS) to 40 euros from 37 euros, citing "more confidence" on the Dutch lender's ability to deliver on its 2028 return on equity target. "More confidence on estimates assessing domestic market dynamics and higher profitability/lower earnings volatility justify, in our view, a lower discount rate taking our PT up to EUR40...The shares have re-rated and absolute upside is more limited now, but we believe the relative investment case remains intact," analysts said in a Friday note. "Costs and capital management are the key drivers of our estimated ROE improvement from 8.9% in 2025 to 13.4% in 2028. Further progress should place ABN among the banks with less volatile earnings and a higher share price rating." The research firm, which has an outperform rating on the stock, also made some "small" changes to its estimates for the company, but noted that the adjustments are not driven by its views on the bank's upcoming second-quarter results. ABN Amro is set to release its pre-close note for the quarter on July 15.
RBC Capital Markets lifted its price target for ABN Amro Bank (ABN.AS) to 40 euros from 37 euros, citing "more confidence" on the Dutch lender's ability to deliver on its 2028 return on equity target. "More confidence on estimates assessing domestic market dynamics and higher profitability/lower earnings volatility justify, in our view, a lower discount rate taking our PT up to EUR40...The shares have re-rated and absolute upside is more limited now, but we believe the relative investment case remains intact," analysts said in a Friday note. "Costs and capital management are the key drivers of our estimated ROE improvement from 8.9% in 2025 to 13.4% in 2028.
Further progress should place ABN among the banks with less volatile earnings and a higher share price rating." The research firm, which has an outperform rating on the stock, also made some "small" changes to its estimates for the company, but noted that the adjustments are not driven by its views on the bank's upcoming second-quarter results.
ABN Amro is set to release its pre-close note for the quarter on July 15.