Summer Sale
50% off Premium Yearly
Opinions Paul Harris, CFA
Banco Santander SASANWEAK BUYOct 27, 2016
Paul Harris, CFAStock price when the opinion was issued
As of Jun 18, 2026. Market Open.
You might be interested:
Chris StuchberryChris Stuchberry
Rick StuchberryInterest rates will go up after the ECB changes chairs in June 2019. Each quarter they put up $2 billion+ of net income and are trading a hair above book value now, plus negative sentiment to Euro banks now. (3.3% dividend yield, Analysts' price target: $106.76)
Chris StuchberryHe doesn’t own this, but he owns comparable banks. The whole global banking sector is trading at very cheap multiples. They are all under pressure from the flattening yield curve, and they all pay hefty dividends. The bank’s poor performance is sector-driven more than driven by the political issues in the countries where it does business.
He owns this as a European bank holding in the portfolio. The flat yield curve is holding them back. He will continue to hold it for when the yield curve normalizes.
Rick Stuchberry
They have a growing franchise in the southern US as well as being in all of Latin and South America. There is good growth compared to a retail franchise in Canada, for example. The issue they face is that there is a cloud over the Euro banking system regarding capital ratios. This is hurting them. Their dividend is safe. It is going to take a long time for people to feel comfortable with European banks. It is not an expensive stock, at or below book value. Until you see a better environment in Europe it will be in that cloud. Low rates in Europe are hurting banks there.