Banco Santander moves with cuts of almost 7% per month while it continues to present significant falls, close to 18% in its annual balance, while, since it presented results on the 28th, its balance is also negative: losses that are close to 5%.
A negative balance, as we say, in a more than difficult environment in which the value moves after solid results, which, however, were lower on the presentation day as analysts understood that the look at Brazil, with more provisions, is a clear warning of what can come. Thus, RBC lowers its possible positive evolution to 3 euros, despite the fact that Jefferies continues to bet on buying the value in the market.
From Morgan Stanley they also lowered, especially looking at Brazil their target price to 4 euros from the previous 4.3, while from Credit Suisse they maintain the previous 4 euros and their overweight recommendation.
From the Swiss bank they consider that diversification continues to be important in the entity. And he looks at Brazil by indicating that the rise in rates negatively affects entities, due to the monetary sanctions that raise their financing costs. Although he estimates that it may be reversed soon, which would lead to an increase in the interest margin in the third and fourth quarters.
“In a valuation by ratios and under the EPS forecast of €0.52/share for the end of 2022, the market discounts a PER for Santander securities of 4.88v, with a discount compared to the multiple on earnings of their peers. By Accounting Value, the market valuation is low, the VC for Santander does not reach 0.5v. The return on dividend-Yield for Santander is now 4%, not insignificant. Based on our fundamental analysis, we reiterate a positive recommendation for Banco Santander with a view to the medium/long term”, highlights the fundamental analyst of Investment Strategies María Mira.
For the Investment Strategies analyst José Antonio González, with Banco Santander “we are at a point where we would probably have some kind of reaction from purchases from 2.45-2.47 and that could make us attack that decreasing guideline that starts from annual maximums, because we are in a fairly important area, previous resistance zone that later becomes a support zone, from 2.278-2.388and that it is also an approximation to 50% of Fibonacci”.
And the Ei expert adds “but, for now, it would not be a reaction that we consider interesting because the probability of attacking that downward trend and from there seeing some kind of reaction from sales in Santander is high. Therefore, it would not be unusual to see some type of attack on the 2,278 and even a perforation of those levels. Banco Santander is a weak value and to begin to see something on the part of the purchases, we would need to exceed the intermediate maximum of 3,078 euros per share”.
Banco Santander on weekly (Left) and daily (Right) chart with Average Amplitude Range in percentage, MACD oscillator and trading volume
Technical Indicators for Investment Strategiesmark, in bearish mode and with a cut of two points, a total score for Banco Santander that barely reaches 1 point out of the 10 possible to which the value can choose. Only positive with the volume of business in the medium term, which is decreasing.
On the other hand, we see that the trend is bearish in both the medium and long term for the value, with total negative momentum, slow and fast, and medium-term business volume, which is decreasing. Volatility is growing in its two aspects, in the medium and long term.