Oil prices edge down from one-month high with upcoming OPEC+ meeting in focus
Investing.com - Morgan Stanley has upgraded ING (NYSE:ING) from Equalweight to Overweight and raised its price target to EUR25.40 from EUR23.50, naming the Dutch bank a Top Pick. The bank, currently valued at $68 billion, trades at a P/E ratio of 13.4x and offers a dividend yield of 2.89%.
The upgrade comes despite expectations that net interest income (NII) will remain flat in Q3, as Morgan Stanley anticipates a stronger Q4 exit rate that positions the bank well for 2026.
Morgan Stanley projects ING will offset approximately €300 million in headwinds from its replicating portfolio next year through savings rate cuts and continued volume growth, leading to NII growth in 2026.
The firm remains ahead of consensus on fee income, citing multiple levers for ING to deliver positive surprises in this area, and views the next share buyback in Q3 (estimated at €2 billion) as the immediate catalyst for the stock.
ING currently trades at 1.18x price-to-tangible net asset value for 2026, with approximately 14% return on tangible equity projected for 2027, and has underperformed the sector year-to-date, according to Morgan Stanley’s analysis.
In other recent news, ING Group NV reported its earnings for the second quarter of 2025, surpassing market expectations. The company achieved an earnings per share (EPS) of $0.64, which was higher than the forecasted $0.60. Additionally, ING Group’s revenue reached $6.53 billion, exceeding predictions of $6.50 billion. These results highlight the company’s financial performance during the period. Despite the positive earnings and revenue figures, the stock experienced a pre-market decline. There were no recent updates regarding mergers involving ING Group. Analyst firms have not reported any upgrades or downgrades for the company following these results. These developments reflect the latest financial activities surrounding ING Group.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.