Santander: Popular deal makes sense, Bankinter says.
(CercleFinance.com) - Bankinter reiterates its "buy" rating on the Santander stock, with a target price of 6.
75 euros, after the EU's Single Resolution Board decided to transfer Banco Popular to Spain's biggest bank.
In a research note, Bankinter says it believes the transaction makes "strategic and financial sense" for Santander.
"Santander now has the leadership in Spain with assets in excess of 465 billion euros, compared to 318 billion euros before, while increasing its customer base by 35% and reaching a market share of 18% amongst PME, which was Popular's main area of business," Bankinter adds.
Bankinter explains the acquisition also seems to be "attractive" from a financial point of view, with the prospect of huge cost synergies in the future.
"We view the operation positively, expect good performance in the medium term and reiterate our buy recommendation," Bankinter says.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
75 euros, after the EU's Single Resolution Board decided to transfer Banco Popular to Spain's biggest bank.
In a research note, Bankinter says it believes the transaction makes "strategic and financial sense" for Santander.
"Santander now has the leadership in Spain with assets in excess of 465 billion euros, compared to 318 billion euros before, while increasing its customer base by 35% and reaching a market share of 18% amongst PME, which was Popular's main area of business," Bankinter adds.
Bankinter explains the acquisition also seems to be "attractive" from a financial point of view, with the prospect of huge cost synergies in the future.
"We view the operation positively, expect good performance in the medium term and reiterate our buy recommendation," Bankinter says.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.