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Banco Santander presents a market potential of 27%

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Banco Santander presents a market potential of 27%

Santander Bank has returned where alone, to resume the 3 euros per share in its price, On which it settles after the strong rebound on the 16th and minimizes, although it is still negative, the losses that come after the start of the Russian War against Ukraine.

Financial sector that tries to overcome obstacles, while moving away, due to the situation the expectation of a rate hike and uncertainty leaves a panorama of better confidence for a consumer that, in addition, due to the inflation effect, it will have less money to spend, which harms the entities, in the face of a much more favorable environment expected of great growth for the current year, which, due to the war, has been cut short.

While the entity has just made public the details of its second share buyback program, which will reach 865 million euros, and approximately 20% of the group’s ordinary profit in the second half of 2021with a maximum price that does not franchise, in that purchase, lot 4.12 euros per share. CoCos will also be amortized in advanceContingent Convertible Tier 1 preferred shares for 750 million euros, in a transaction to be paid on the Irish Stock Exchange, where they will be listed, on April 25.

Regarding its price, we see that the value remains the fourth entity in advances of the year, only with BBVA behind and annual gains of 6.84%. Since the war began, almost a month ago, the value is still down 2.7%.

Santander annual stock price

Santander annual stock price

Respect to analysts, the last to lower their expectations they are the experts from JPMorgan, which has reduced, for the entire Spanish financial sector, the profit forecast by 15%, while maintaining the recommendation of neutral, although lower the price objectively from 3.70 euros per share from the previous 4.30 euros.

For his part, from Zacks Investment Research upgrades to buy from hold and in Renta 4 they overweight the market value with a PO of 3.99 euros per share. This gives the Cantabrian financial institution a potential upward path that exceeds 27%. The last to rule on Santander is Jefferies. In the case of the New York firm they raise their PO to 3.8 euros per share from the previous one of 3.7 euros and also raise your recommendation to buy from hold.

For the IG analyst Sergio Ávila, in Santander we have “a kind of double top if the minimum between maximums was lost, now we are rebounding. For me, to trust the bank again, the Santander will have to exceed 3.49 euros or 3.5 euros. In addition, if you have in your portfolio can be maintained as long as it does not lose the 2.88 euros per share, pBut be careful because, well, some additional little things may come”.

Néstor Borrás, independent analyst points out that Santander “rebounds from the relevant support area affected around 2,838 / 2,6530 euros per shareleaving a new minimum in which to work at the height of 2.49 euros per share. The medium and long-term moving averages have recently crossed higher. The first zone of resistance would be located in the bearish cap 3.2375 / 3.1295 euros per share”.

Santander on daily chart with Average Amplitude Range in percentage, MACD oscillator and trading volume

Santander technical analysis of the value

Santander technical analysis of the value

And to close, from the premium technical indicators prepared by Investment Strategies, Santander sees advance, in consolidation mode, as it improves one point from the previous assessment. This accumulates a raise until the 6 total points of the 10 possible to which the value can aspire. among the best, the long-term trend, which is bullishthe total slow positive moment that Santander treasures and that is added to the VOLUME of business that, in its two aspects, in the medium and long term, is growing.

On the other hand, the downward trend that it is showing right now in the medium term stands out, according to technical indicators, the moment totally fast, which is negative along with volatility, its amplitude range which, in the medium and long term, is increasing for the value.

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