On Thursday, RBC (TSX:RY) Capital Markets initiated coverage on Bankinter , S.A. (BME:BKT:SM) (OTC: BKIMF), assigning the stock an Outperform rating and setting a price target of EUR 9.75. The research firm believes that the market consensus underestimates the earnings potential of the Spanish bank, due to the absence of long-term guidance from the company.
Bankinter's performance has been noteworthy, with the firm consistently outperforming its sector in key profit and loss drivers such as loans, net interest income (NII), and fee generation. RBC Capital's analysts argue that these strengths position the bank well for future growth, and they anticipate a positive trajectory for the bank's financials.
The analysts at RBC Capital are particularly optimistic about Bankinter's prospects, estimating a 14% higher profit before tax (PBT) by the fiscal year 2026 compared to the consensus. This bullish stance highlights the firm's confidence in Bankinter's ability to exceed market expectations and deliver strong financial results.
Bankinter has been recognized for its above-sector growth over the long term, which RBC Capital suggests is not fully appreciated by the current market consensus. The Outperform rating is indicative of the firm's expectation that Bankinter will continue to excel in its financial performance, potentially leading to a rise in its stock value.
The establishment of the EUR 9.75 price target by RBC Capital provides investors with a gauge for the potential upside of Bankinter's shares. As the market processes this new information, investors will be watching to see if the bank can indeed surpass the expectations set by RBC Capital's analysis.
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