Nucor earnings beat by $0.08, revenue fell short of estimates
On Wednesday, Citi analyst Borja Segura increased the price target for CaixaBank SA (CABK:SM) (OTC:CAIXY) to €8.50, up from the previous €7.90. The firm continues to endorse a Buy rating for the stock. Segura highlighted CaixaBank’s positive start to the year, noting substantial commercial momentum and gains in market share across a variety of products, including highly profitable non-interest-bearing deposits.
The analyst attributed the heightened earnings per share (EPS) forecasts for the years 2025 through 2027, which have been raised by an average of 7%, to several factors. These include a steeper yield curve and a swifter utilization of Deferred Tax Assets (DTAs) than was earlier projected.
In his analysis, Segura underscored CaixaBank’s standalone profitability, which is expected to remain strong, with projections of 17% over the 2025-27 estimate period. Moreover, the bank’s anticipated capital generation is significant, with an estimated €13.7 billion over the same period, accounting for roughly 26% of the market cap. This includes dividends, buybacks, and surplus capital, setting a high standard for any potential mergers and acquisitions (M&A) alternatives.
Citi also conducted a scenario analysis regarding the potential acquisition of Novobanco, which has been a subject of recent news, as reported by Bloomberg on May 9. However, as of now, neither CaixaBank nor Novobanco have issued any statements regarding the speculation of this acquisition. The price target adjustment reflects Citi’s confidence in CaixaBank’s financial strategy and market position, as well as its potential for future growth and profitability.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.