On Monday, Berenberg increased its price target for CaixaBank SA (CABK:SM) (OTC: OTC:CAIXY) shares to €6.20, up from the previous €5.75, while maintaining a Buy rating on the stock. The adjustment comes ahead of the Spanish bank's second-quarter financial results, which are scheduled for release on July 31, 2024.
The firm anticipates that CaixaBank will demonstrate operational resilience in the second quarter of 2024, with net interest income expected to remain stable and fee income showing signs of recovery. Analysts at Berenberg also predict that the bank may announce interim capital distributions along with its second-quarter results.
Berenberg forecasts a €0.13 interim dividend per share (DPS) for CaixaBank. The firm's valuation suggests that the bank's shares are currently trading at 7.3 times the estimated earnings per share (EPS) for 2025, which is slightly above the sector average. The new price target suggests a roughly 20% potential upside from the current trading price of the bank's shares.
The positive outlook for CaixaBank is supported by the bank's performance and the expected stability in its earnings. Investors are likely to watch closely for the upcoming financial disclosures and any announcements regarding capital distribution, which could influence the bank's share performance in the near term.
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