BCDRF - Banco Santander: A Positive Update For 2025

2025-01-23 02:56:53 ET

Summary

• Banco Santander stock remains a "Buy" due to its operational outperformance, impressive efficiency improvements, and significant profit growth, despite not being as "cheap" as before.
• The bank's 3Q24 results confirmed my positive thesis, with record profits, improved efficiency ratios, and increased shareholder rewards through dividends and buybacks.
• Santander's geographic diversification and successful ONE transformation program mitigate risks, making it a fundamentally appealing investment compared to peers like BBVA, HSBC, and Lloyds.
• I maintain my price target of $5.25/share for 2025 on SAN, expecting continued outperformance and market recognition of the bank's undervaluation.

Dear readers/followers,

In this article, I will review one of my favorite southern-European banks for investment. I’m talking about Banco Santander ( SAN ), a bank that I’ve written about roughly on a quarterly overall basis. As of now, the latest article I published for the bank came in October. It marked a clear difference in my stance on the bank – not because I changed by rating, but because I changed my view that the bank was no longer “cheap” as such. I retained my “Buy” rating, and while the bank hasn’t outperformed since that particular article, It has done operationally well. In this article, I will look at prospects updated for 2025-2027 and show you why my position, bought at a very cheap price, will be retained at this particular time....

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