BNP stops taking sides in Sabadell and raises its valuation by 23%
Exane BNP Paribas analysts are once again decisively betting on Banco Sabadell, to the point of issuing the highest rating of all the current ones on the Ibex member.
Exane BNP Paribas analysts have once again decided to recommend Banco Sabadell with the highest valuation among all Ibex-listed banks. The French firm has incorporated Sabadell back onto its list of stocks and is now prioritizing it. Previously, they only recommended maintaining a neutral position, with shares expected to rise 79% in 2025 and 68% in 2024.
The analysts cite several factors driving this change in stance, including improved profitability ratios and a projected return on equity (ROE) of 19% in 2028, surpassing the average for Spanish banks. This rise in profitability is attributed to factors such as reduced provisions and an estimated 5.5% annual growth in commissions over the period of 2025-2028.
With these projections in mind, Exane BNP Paribas has raised its price target for Banco Sabadell shares from 3.70 euros to 4.30 euros, representing a 23% increase from the previous valuation and the highest valuation among all Ibex-listed banks.
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