BBVA: Barclays raises target price
(CercleFinance.com) - Barclays reiterates its "outperform" rating on the BBVA share, having raised its corresponding target price by 18% to 4 euros, to integrate the positive contribution to capital from the divestment of its subsidiary in the US.
"We think merging with Sabadell would make sense financially and strategically, and believe the current market-implied deal premium relative to potential cost savings is comparable to that evident in the latest announced Caixa-Bankia deal," the broker says.
Additionally, it thinks that, “if a deal materialises, it is more likely to be structured as a share-based rather than a cash-based transaction as this would result in higher solvency and higher excess capital”.
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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.
"We think merging with Sabadell would make sense financially and strategically, and believe the current market-implied deal premium relative to potential cost savings is comparable to that evident in the latest announced Caixa-Bankia deal," the broker says.
Additionally, it thinks that, “if a deal materialises, it is more likely to be structured as a share-based rather than a cash-based transaction as this would result in higher solvency and higher excess capital”.
Copyright (c) 2020 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.