Caixabank: Oddo still a buyer, adjusting estimates and TP
(CercleFinance.com) - Oddo has reduced its 2022/2023 earnings estimates for Spain's Caixabank by an average of 2% (+5% on average vs.
consensus).
However, the broker maintains its Outperform rating on the stock, trimming its target price, which is now 3.30 euros (vs. 3.40 euros).
The group seems well positioned to benefit from: 1/ the prospect of an end to the health crisis and 2/ the supporting factors identified in the banking sector, thanks to both its business model and the integration of Bankia, Oddo says.
However, the analyst adds that the main downside of Q2 2021 was subdued growth in core revenues, due to stronger-than-expected pressure on interest income, confirming the persistence of headwinds in the near term (low interest rates, relatively weak volumes, especially in corporate lending and a lower contribution from the ALCO portfolio).
The share is currently down over 1.5% at about 2.65 euros.
Copyright (c) 2021 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.
consensus).
However, the broker maintains its Outperform rating on the stock, trimming its target price, which is now 3.30 euros (vs. 3.40 euros).
The group seems well positioned to benefit from: 1/ the prospect of an end to the health crisis and 2/ the supporting factors identified in the banking sector, thanks to both its business model and the integration of Bankia, Oddo says.
However, the analyst adds that the main downside of Q2 2021 was subdued growth in core revenues, due to stronger-than-expected pressure on interest income, confirming the persistence of headwinds in the near term (low interest rates, relatively weak volumes, especially in corporate lending and a lower contribution from the ALCO portfolio).
The share is currently down over 1.5% at about 2.65 euros.
Copyright (c) 2021 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.