Bankia: UBS raises target price, stays neutral.

(CercleFinance.com) - UBS is maintaining a "neutral" rating on Bankia, while increasing its target price from 0.
82 euro to 0.95 euro, which is still 2% below the stock's current level.

While the broker sees signs of more resilient revenues after their recent erosion, UBS believes the Spanish lender's overall earnings momentum remains "subdued".

The professional adds current valuations already seem to include benefits from measures such as share buybacks and/or increased cash payout.

Finally, barring any hikes in interest rates, UBS sees a potential deal with Banco Mare Nostrum (BMN) as the only scenario where returns on the stock could pleasantly surprise.

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