The Ibex has gained close to 4% in the last ten years, but not all values have behaved positively. Among the laggards in the period, a financial entity stands out. Most of the firms that follow it like it and it has an upside potential of 17% over twelve months.
The Banking is the main protagonist of the increases in the Ibex This exercise. Six o’clock entities that are part of the selective accumulate progress of between 15% and 67% this 2024.
In the last decade, in which the main index added 4% (from the beginningJune 1, 2014), There are banks that also stand out positively. It is the case of Bankinter and Unicaja which accumulate increases of 80% and 18%, respectively in the period.
However, there are an entity that has been left behind in recent years compared to their Spanish counterparts. She is SANTANDER. The value yields 34% since June 2014 and is the fourth most penalized value of the Ibex since then, according to data from Bloomberg.
Favorite option in the sector
But experts believe it is a clear investment opportunity. The bank It is the one with the most purchase recommendations of the entire sector. Thirty and one of the 32 entities those who follow him believe that you have to have it in your wallet and 23 of them consider that it is time to take positions right now.
Despite its worst performance since June 2014, Santander He is showing off this year on the floor. Their titles score 23.5% since the beginning of January. Quote like this in maximum zone of May 2018, close to the 4.8 euros it marked on May 20.
Analysts believe that He has assets in his favor to do well in the medium term due to several factors. One of them is lgood progress of your business. Santander gadded 2,852 million from January to March, 11% more Compared to the same period of the previous year.
The results are supported by the positive trend that continue to show the income. They reached a record above 15,000 million, driven by the improvement of the interest margin in all businesses and the gain of five million customers, up to 166 million throughout the group.
“All Santander metrics for the first quarter are aligned with meeting the 2024 objectiveswhich are even more ambitious than those of the previous year,” says Víctor Peiro, general director of analysis at GVC Gaesco. The entity recommends buying the bank’s securities also for their attractive shareholder remuneration policy.
The entity chaired by Ana Botín strikes expects to distribute more than 6,000 million euros among its shareholders charged to the profits of the current financial year.
This remuneration would aim to a record result of more than 12,000 million euros in 2024, in application of the current policy of payout (percentage of profit allocated to dividends), located at 50%. In March, the shareholders meeting approved the final dividend of 0.095 euros that was paid on May 2 charged to 2023.
This amount, added to the 0.081 euros that Santander already distributed in November as the first dividend of the year, will place in 0.176 euros the total payment in cash on account of 2023, 50% more than 2022.
In addition, the entity is carrying out a share buyback plan for an amount of 1,500 million euros, which began last February 20. With all this, Santander will allocate 5.5 billion euros to remunerate its shares. However, heSantander’s dividend yield is 3.76% at the moment.
Intact appeal
From Miraltabank they assure that in terms of stock market valuation, and after great performance since 2022, The sector continues to have attractive valuations. “Many banks still offer multiples of price over book value of its own funds below one, as is the case of Santander,” he says. The book value of Santander is 0.69 times.
With all this, the consensus of experts consulted by Bloomberg grants a target price of 5.54 euros per share at value. It means giving a upside potential of 19% over twelve months.CaixaBank and Alantra they go further and hope that go up to 30% higher, standing above 6.10 euros.
