Santander: analyst downgrade weighs on stock
(CercleFinance.com) - The share of Spanish bank Santander is one of biggest fallers IBEX index on Thursday after Credit Suisse downgraded the stock from "outperform" to "neutral" this morning.
The share of the third largest bank in the euro zone in terms of assets is currently down 1.4% on the Madrid Stock Exchange, underperforming the Spanish market, which is down 0.9%.
In comments on the Spanish banking sector, Credit Suisse says it prefers banks that are “staying domestic” to those with international exposure.
"We believe the market underestimates the dual headwinds from both lower rates and volumes in the traditionally high-growth emerging markets," analysts say.
"An analysis of previous recessions in both Mexico and Brazil shows a meaningful, multi-year decline in loan growth across both consumer and SME," Credit Suisse warns.
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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.
The share of the third largest bank in the euro zone in terms of assets is currently down 1.4% on the Madrid Stock Exchange, underperforming the Spanish market, which is down 0.9%.
In comments on the Spanish banking sector, Credit Suisse says it prefers banks that are “staying domestic” to those with international exposure.
"We believe the market underestimates the dual headwinds from both lower rates and volumes in the traditionally high-growth emerging markets," analysts say.
"An analysis of previous recessions in both Mexico and Brazil shows a meaningful, multi-year decline in loan growth across both consumer and SME," Credit Suisse warns.
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.