CFRA upgrades ING Groep stock rating to Buy on improved profitability

Investing.com - CFRA upgraded ING Groep NV (NYSE:ING) from Hold to Buy on Thursday, while raising its price target to $30.00 from $25.00. The stock, currently trading at $25.63 with a market capitalization of $72.3 billion, has demonstrated remarkable strength with a 74% gain year-to-date. According to InvestingPro analysis, ING is currently trading near its Fair Value.

The research firm changed its valuation methodology from price-to-book to price-to-earnings multiple, citing better alignment with current market conditions and ING’s operational trajectory. The new target price reflects a 2026 P/E of 11.3x, representing a premium over ING’s five-year historical average forward P/E of 8.9x. Currently trading at a P/E of 14.2x, ING shows strong momentum, with InvestingPro data revealing multiple positive indicators, including consistent dividend increases and aggressive share buybacks.

CFRA maintained its 2025 earnings per ADS forecast of EUR2.00 but increased its 2026 EPADS estimate to EUR2.30 from EUR2.20, pointing to ING’s improved profitability and capital return potential.

The bank’s EUR2B share buyback program was highlighted as providing immediate shareholder value creation, while CFRA noted the stock trades at only 9.5x 2026E P/E despite a 20% rally since May.

The upgrade reflects ING’s successful navigation of the challenging rate environment and strong execution on capital returns, cost discipline, and fee income diversification, according to CFRA.

In other recent news, ING Group reported its second-quarter earnings for 2025, surpassing market expectations. The company achieved an earnings per share of $0.64, exceeding the forecasted $0.60, while revenue reached $6.53 billion, slightly above the anticipated $6.50 billion. Meanwhile, Morgan Stanley upgraded ING’s stock rating from Equalweight to Overweight, citing a positive outlook for net interest income in the fourth quarter, despite expectations of flat performance in the third quarter. Morgan Stanley also raised its price target for ING to EUR25.40 from EUR23.50 and named it a Top Pick. Additionally, JPMorgan adjusted its price target for ING to EUR25.00 from EUR22.60, maintaining an Overweight rating and adding the bank to its top picks portfolio. These developments reflect a growing confidence among analysts in ING’s future performance.

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