CaixaBank stock rating upgraded to Buy by CFRA, target to EUR8.00

On Monday, CFRA analyst Firdaus Ibrahim shifted the rating for CaixaBank SA (CABK:SM) (OTC: OTC:CAIXY) from Hold to Buy, adjusting the price target upwards to EUR8.00 from the previous EUR7.50. The upgrade reflects the bank’s strong performance in the first quarter of 2025, which surpassed expectations. The bank, with a market capitalization of $55.1 billion, has demonstrated impressive momentum with a year-to-date return of 47.45%.

The revised price target is based on the consensus 2025 price-to-book (P/B) estimate of 1.48, which stands above the average peer P/B of 0.98 times. CaixaBank’s market leadership and superior profitability in its domestic market are cited as the reasons for the premium valuation. According to InvestingPro analysis, the stock is currently trading near its Fair Value, with a P/E ratio of 8.12x and return on equity of 17%.

CFRA’s positive outlook on CaixaBank is underpinned by its profitability profile, supported by a robust domestic franchise. The bank’s strategic plan for 2025-2027 is deemed achievable, positioning it for growth in customer base and business expansion, particularly in consumer and SME lending, deposits, insurance, and mutual funds.

The bank’s capitalization is expected to remain strong, which is anticipated to back its shareholder remuneration plan. An attractive projected dividend yield of 6.4% adds to the bank’s appeal, according to CFRA. InvestingPro data reveals that CaixaBank has maintained dividend payments for 18 consecutive years, with a current yield of 5.11%. InvestingPro subscribers have access to 10+ additional insights about CaixaBank’s financial health and growth prospects.

In light of the recent performance and future prospects, CFRA has increased its earnings per share (EPS) forecasts for CaixaBank to EUR0.80 for 2025 and EUR0.82 for 2026, up from previous estimates of EUR0.70 and EUR0.74, respectively. The bank reported strong earnings of $0.91 per share in the last twelve months, supporting these optimistic projections.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.