New year, same story. This beginning of the year has brought with it recent ghosts in the form of inflation that is not completely controlled in the euro zone. There was a lot of hope in the latest monthly data for 2024, published this week. However, the 2.4% that analysts estimated was met and somehow ended up reducing the optimism that existed in the market regarding the pace that the ECB could follow on the path of rate cuts.
This has given a new boost to the prices of the banking sector, which are highly dependent on interest rate expectations since this reference has a direct impact on its credit business and, consequently, on its interest margin and profits.
Thus, the Spanish banks in these first stock market sessions of the year already 3.2% is recorded. The increases in the sector are led, once again, by Sabadell, which appreciates more than 5% and it is once again close to 2 euros per share, maximums not seen since September. With this rebound, it not only leads the increases in banking but also in the Ibex 35 itself, which added 1.6% in the period.
In this context, the strength of the Catalan entity not only responds to the good moment of its own business and the situation of interest rate expectations in Europe but also to the takeover bid that remains open by BBVA, pending approval. good from the Competition regulator. It is also not ruled out that the Basque entity will have to raise the bid, either by providing a better exchange of shares, or by paying part of it in cash.
Despite this recent rise, which leaves Sabadell close to its highs for the year, analysts still believe that it can continue advancing on the trading floor. Specifically, they set their average target price at 2.22 euros, which leaves an upside potential of 12%. At the same time, there is no analysis house that suggests selling its shares while the majority, 60%, recommend buying them, placing it as one of the two purchasing advice that remains in the sector along with Santander.
“Its latest results were positively surprising, with excess capital and an interesting remuneration plan for shareholders via dividends and buybacks,” Bankinter points out. “We continue to think that the probability of success of the takeover bid is reduced if the BBVA offer does not improve,” they conclude.
#Sabadell #leads #Ibex #beginning #year
