Robinhood shares gain on Q2 beat, as user and crypto growth accelerate
On Thursday, ING Group (NYSE:ING)’s shares received an optimistic update from Goldman Sachs as analyst Chris Hallam upgraded the bank’s stock rating from Neutral to Buy. Accompanying the upgrade, the price target was also increased to EUR22.60, up from the previous EUR19.00. This adjustment reflects Goldman Sachs’ expectation of ING’s potential outperformance in the financial sector.
Hallam’s analysis indicates that ING’s stock has not kept pace with the Stoxx Europe 600 Banks Index (SX7E), trailing by 13 percentage points over the past 12 months, 10 percentage points year to date, and 20 percentage points since early April 2024. However, Goldman Sachs now anticipates a reversal in this trend, citing several key factors that could drive ING’s shares higher.
The first factor highlighted is the Net Interest Income (NII), which is believed to have bottomed out in the fourth quarter of 2024. Goldman Sachs predicts that lower funding costs will lead to an increase in income for ING. Furthermore, the firm views ING as well-positioned to benefit from an improved growth outlook in Europe, especially in Germany.
Goldman Sachs’ analysts also project a 2 percentage point rise in Return on Tangible Equity (ROTE) by 2027 compared to 2025. This increase is seen as a positive sign of the bank’s future profitability. Lastly, the valuation of ING’s stock is deemed attractive by Goldman Sachs, as it currently trades at 7.9 times the estimated Goldman Sachs earnings per share for 2026, which matches the valuation of the broader coverage yet is considered inexpensive.
The upgrade and price target raise by Goldman Sachs suggest a renewed confidence in ING’s financial prospects and potential for shareholder returns. ING’s performance in the upcoming quarters will be closely watched by investors to see if the bank can capitalize on the favorable conditions outlined by Goldman Sachs.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.