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Investing.com - JPMorgan has raised its price target on ING (NYSE:ING) (AS:INGA) to EUR25.00 from EUR22.60 while maintaining an Overweight rating on the Dutch banking group. The stock is currently trading at $24.62, near its 52-week high of $25.11, after an impressive 66.58% gain year-to-date.
The investment bank has added ING to its top picks portfolio, noting that the stock trades at "an undemanding 7.2x PE, 1.1x NAV for RoNAV 15.8% in 2027E." According to InvestingPro, ING currently trades at a P/E ratio of 13.57x, and three analysts have recently revised their earnings estimates upward for the upcoming period.
JPMorgan believes commercial net interest income growth in the medium term is still underestimated by investors, who remain focused on headwinds from short-term rates in 2025-26.
The firm highlighted that the sharp increase in replicating income is largely undiscounted, as are the stickiness of ING’s retail deposit franchise and its strong repricing capacity, with group liability margin improving to 121 basis points.
JPMorgan also noted that ING is delivering on its strategy and profitable growth, particularly in Retail in the Netherlands and Germany, with capital return looking attractive at "a total yield of ~9.7% pa on average FY25-27E."
In other recent news, ING Group NV reported its second-quarter 2025 earnings, surpassing market expectations. The company achieved an earnings per share (EPS) of $0.64, exceeding the forecast of $0.60. Revenue also outperformed predictions, reaching $6.53 billion compared to the expected $6.50 billion. Additionally, Morgan Stanley upgraded ING’s stock rating from Equalweight to Overweight, citing a positive outlook for net interest income (NII) in the fourth quarter. The firm also raised its price target for ING to EUR25.40 from EUR23.50, identifying the Dutch bank as a Top Pick. Despite expectations of flat NII in the third quarter, Morgan Stanley anticipates a strong exit rate for the fourth quarter, which they believe positions ING well for 2026. These developments provide investors with key insights into the company’s recent performance and future potential as perceived by analysts.
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