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On Thursday, Kepler Cheuvreux downgraded Bankinter , S.A. (BME:BKT:SM) (OTC:BKIMF) stock from Buy to Hold, citing concerns about its valuation. The firm raised its price target to €11.50 from €9.70, reflecting an updated earnings forecast.
The report highlights Bankinter’s strong performance, noting rising fee income and tight cost control, with returns significantly above its peers. Despite these positive factors, the shares are trading at approximately 1.7 times the forward tangible book value, which is more than two standard deviations above their long-term average.
Kepler Cheuvreux’s analysts believe that much of Bankinter’s recent strength is already reflected in its stock price, leaving limited room for further gains in the near term. The report emphasizes that the focus is on valuation, suggesting that the current risk-reward balance is more even.
While the analysts continue to view the bank’s business and long-term prospects positively, they indicate that a more favorable entry point or stronger earnings momentum would be needed to adopt a more optimistic stance on the stock.
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