Update shared on 18 Oct 2025
Fair value Increased 1.26%Emerging Markets And Digital Transformation Will Unlock Value
Banco Bilbao Vizcaya Argentaria's analyst price target has been revised upward from €16.69 to €16.90. Analysts cite ongoing earnings momentum, a favorable valuation, and above-average capital returns in their updated outlook.
Analyst Commentary
Recent street research highlights a largely optimistic consensus around Banco Bilbao Vizcaya Argentaria. Multiple analysts have raised their price targets, citing sustained strengths and upside in the bank's operational and capital profile.
Bullish Takeaways
- Bullish analysts have significantly lifted their price targets, pointing to robust earnings momentum and continued business execution.
- Above-average capital returns are seen as a key differentiator. This supports the case for further re-rating of the bank's shares.
- Valuation remains described as “undemanding,” indicating the shares are not viewed as overpriced relative to underlying fundamentals.
- Recent performance, particularly after a strong second quarter, is cited as supporting strategic flexibility and growth prospects moving forward.
Bearish Takeaways
- Some caution remains regarding the pace and sustainability of earnings growth, especially in the face of potential macroeconomic headwinds.
- Concerns about elevated price targets may reflect increased expectations. These could be difficult to meet if operational momentum wanes.
- Analysts continue to monitor how BBVA balances further capital returns with the need for ongoing investment in strategic initiatives.
What's in the News
- BBVA recently launched a digital consumer bank in Germany, coinciding with new competition as JPMorgan plans to introduce its Chase retail bank in the same market next year (Bloomberg).
- RBC Capital raised its price target for BBVA to EUR 17.50 from EUR 13 and is maintaining an Outperform rating on the shares (RBC Capital).
- The BBVA Board of Directors approved a cash interim dividend of EUR 0.32 per share for the 2025 dividend, to be paid in November 2025.
- An upcoming board meeting in September 2025 will consider amending terms of the offer for Banco Sabadell, including improvements to the consideration offered.
Valuation Changes
- The Fair Value Estimate has risen slightly to €16.90, up from €16.69.
- The Discount Rate has fallen modestly from 9.48% to 9.41%.
- Revenue Growth projections have decreased marginally from 8.05% to 8.02%.
- The Net Profit Margin is forecast to improve slightly, rising from 29.88% to 29.99%.
- The future P/E ratio is expected to increase modestly from 12.34x to 12.44x.
Disclaimer
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