Analysts raised BBVA's price target to €16.22, citing strong Q2 earnings momentum, enhanced capital return potential, and undemanding valuation, reflecting increased confidence in the bank’s earnings trajectory and strategic execution.
Analyst Commentary
- Bullish analysts cite strong Q2 earnings momentum as a key driver for upward price target revisions.
- Enhanced strategic optionality and the capacity for above-average capital returns are noted as catalysts for a more positive outlook.
- Current valuations are viewed as undemanding, supporting further upside potential.
- Incremental price target increases reflect confidence in BBVA's earnings trajectory and strategic execution.
- Outperform and Overweight ratings are maintained in light of improved financial performance and capital efficiency.
What's in the News
- BBVA recently launched a digital consumer bank in Germany, entering a competitive market alongside JPMorgan's planned Chase launch and Deutsche Bank's expansion efforts (Bloomberg, periodical).
- RBC Capital raised BBVA's price target to EUR 17.50 from EUR 13 and reiterated an Outperform rating (RBC Capital, periodical).
- BBVA provided guidance for full year 2025, expecting net profit to close somewhat below EUR 1 billion, with revenue anticipated to grow at a high single-digit rate (Key Developments).
- BBVA's voluntary tender offer for Banco Sabadell was authorized by the Spanish Council of Ministers subject to additional conditions, but BBVA has opted not to withdraw its offer and it remains in effect (Key Developments).
- The Spanish government has permitted BBVA's Sabadell takeover bid but imposed a three-year restriction on merging operations, complicating the process; both banks must remain autonomous in key areas during this period (Key Developments).
Valuation Changes
Summary of Valuation Changes for Banco Bilbao Vizcaya Argentaria
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from €16.00 to €16.22.
- The Future P/E for Banco Bilbao Vizcaya Argentaria has significantly risen from 10.64x to 12.41x.
- The Net Profit Margin for Banco Bilbao Vizcaya Argentaria remained effectively unchanged, moving only marginally from 28.88% to 29.09%.
Disclaimer
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