Santander: Jefferies reiterates 'underperform' rating

(CercleFinance.com) - Jefferies reiterates its "underperform" rating on Spain's Banco Santander, with a target price of 4 euros, seeing three reasons to remain cautious on the share after its 17% fall this year, which underperformed the STOXX Europe 600 Banks index by 4%.


While the US broker doesn't predict an emerging markets crisis, it says that currency headwinds have become "meaningful," given the bank's profit-weighted geographic footprint.

In a note sent to clients, the broker also wrote that weaker capital position acts as a further drag, and provides limited scope to absorb unforeseen negative surprises.

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