Santander: Oddo BHF mantains buy rating after Q1 results

(CercleFinance.com) - Oddo BHF reinstates its "buy" rating on the Santander share, while shaving 10 cents off its target price (from 5.
6 euros to 5.5 euros), after the group's quarterly results, which reinforced its investment thesis that in particular is focused on the recovery of its business in Brazil.

At 0.7 times 2018 BV for ROE of close to 9% by 2020, in the broker's opinion the share's valuation remains attractive compared to the European banking sector (approximately 0.7x BV for an ROE of around 8% in 2020), the analyst said.

However, the broker has adjusted its earnings estimates for the Spanish financial institution by an average of 3% over the period 2019/2021, in order to integrate a more difficult operating environment.


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