Spanish Bank Banco Santander, S.A. (ES:SAN) achieved a “Perfect 10” on the TipRanks Smart Score Tool. It made it to the list yesterday, which suggests a higher probability of the stock outperforming market benchmarks. Analysts have rated the stock as a Moderate Buy and anticipate a potential 30% increase in its share price.
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TipRanks offers a wide variety of research tools to help users with their due diligence in choosing suitable investment options. One such tool is the TipRanks Smart Score, which assigns a score of one to ten to stocks, offering insights into their potential to outperform the broader market. This score is computed using eight distinct factors, including insider transactions, fundamental analysis, analyst ratings, news sentiment, and more.
Here, we have used the Top Smart Score Stocks tool for the Spanish market to assess the list of companies that have been recently assigned a “Perfect 10” score.
Let’s dig deeper.
Recent Earnings
One of the major reasons for a perfect score was the encouraging financial numbers from the bank. Last week, Santander reported its second-quarter earnings for 2023. The bank achieved a growth of 7% in its attributable profit of €5.2 billion in the first half as compared to the same period a year ago. The total income for the period grew by 13% to €28.3 billion. The growth was a result of the solid numbers from Europe, which offset the dull performance in North and South America. The net interest income also increased by 15%, driven by higher interest rates in Europe.
The bank reported a 14.5% return on tangible equity (RoTE), marking an improvement of 80 basis points. This is a clear indication of the solid results, increased profitability, and enhancement of shareholder value.
Analysts’ View
Post-results, over the period of the last 10 days, the bank’s stock has received support from analysts with confirmation of their ratings. Analysts have a bullish take on the stock and also expect good growth in the share price.
Four days ago, analyst Ignacio Cerezo from UBS confirmed his Buy rating on the stock, predicting a growth rate of 47%. He has the highest price target of €5.30 on the stock.
On the same day, Berenberg Bank analyst Michael Christodoulou reiterated his Hold rating with a forecast of a 13.7% upside potential in the share price.
Eight days ago, analysts from Deutsche Bank and Credit Suisse also recommended Buying the stock. Their price targets imply a growth potential of 23% and 33%, respectively.
Is Banco Santander a Good Stock to Buy?
According to TipRanks’ analyst consensus, SAN stock has a Moderate Buy rating. The stock has a total of 11 recommendations, of which six are Buy.
The average share price forecast is €4.69, which is 30.8% higher than the current price level.
Ending Notes
The bank has achieved another strong quarter, backed by revenue growth and nine million new customers in the last twelve months. Moving ahead, analysts are optimistic about the full-year numbers and expect the share price to grow further.
The “Perfect 10” on the Smart Score list and the positive ratings further strengthen the investment case.
