Santander: shares up on UBS upgrade

(CercleFinance.com) - Santander shares were up on Monday after UBS upgraded the stock from "neutral" to "buy" and upped its price target from 2 euros to 3.
3 euros, meaning upside potential of 20%.

The Spanish bank was one of top gainers on the IBEX 35 index, trading up 2% in morning trading.

In short, UBS believes earnings risks remain "skewed to the upside" compared to both its forecasts and consensus.

"Also, we like the earnings balance between (EM) revenue growth and (DM) cost reductions, making the bank's return pick up less dependent on CoR (cost of risk) normalisation," the broker wrote in a note.

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