CIXPF - CaixaBank: Shares Look Fully Valued Despite Resilient Earnings (Rating Downgrade)
2024-05-25 00:32:42 ET
Summary
- Shares of Spain's CaixaBank have done well in the year since I first covered them, significantly outperforming wider European financials thanks to a supportive macro environment.
- Ample systemwide liquidity and an asset sensitive balance sheet have resulted in resilient net interest income, with management pointing to mid-single-digit year-on-year growth in 2024.
- While this is ultimately supporting strong profitability, the stock's healthy premium to tangible book value fully reflects this, leaving limited upside for investors.
Shares of CaixaBank ( CAIXY )( CIXPF ) have done well since I first covered them with a 'Buy' rating roughly 12 months ago, significantly outperforming broader European financials ( EUFN ) with a ~55% total return in that time....
CaixaBank: Shares Look Fully Valued Despite Resilient Earnings (Rating Downgrade)