Bankia: RBC begins coverage with 'underperform'.
(CercleFinance.com) - On Wednesday RBC Capital Markets initiated its coverage of Bankia, with an "underperform" rating, saying that the Spanish bank is too expensive at current levels.
Bankia shares have outperformed the sector by 10% year-to-date, driven partly by its interest-rate sensitivity and partly by the value accretive Banco Mare Nostrum (BMN) transaction, the brokerage firm said in a research note.
"However with lower coverage than peers and potentially significant capital headwinds, we believe that Bankia is currently too expensive," it said, setting a target price of 4.10 euros.
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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.
Bankia shares have outperformed the sector by 10% year-to-date, driven partly by its interest-rate sensitivity and partly by the value accretive Banco Mare Nostrum (BMN) transaction, the brokerage firm said in a research note.
"However with lower coverage than peers and potentially significant capital headwinds, we believe that Bankia is currently too expensive," it said, setting a target price of 4.10 euros.
Copyright (c) 2017 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.