#SaxoStrats: Banco Santander to take upside turn
Banco Santander has taken a 15% hit on shares in the year-to-date to make it one of the worst European banking stocks in 2015, but a close look at the growing loan book and an improving Spanish economy suggests this could turn.
Valuation hits 2013 levels… with P/B ratio at 0.84x down from 1.34x on average in 2014 which again is at odds with a rising return on equity. Second-quarter results were solid and the bank is diversified enough to withstand the temporary weakness in Latin America on the back of the improvement in the Spanish economy.
Management and risk description
Entry: at market.
Stop: trailing stop at €4.49 with in steps of €0.08.
Banco Santander's five-year rollercoaster
Source: Saxo Bank
— Edited by Martin O'Rourke
Non-independent investment research disclaimer applies. Read more