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Opinions David Driscoll
Banco Santander SASANCOMMENTNov 14, 2016
David DriscollStock price when the opinion was issued
As of Jun 18, 2026. Market Open.
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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
This is doing a lot of juggling, because Brazil, Mexico, Britain and Spain are all scrambling. More of a retail bank, so you do get the benefit of the doubt in that they do have good branches. They are trying to move to the digital space, just like we are seeing in Canada. The problem they are having in Spain is new elections as well as real estate issues with bad debts. Brazil is a problem. Mexico could be a problem, from the standpoint that if Trump does not want to do business with Mexico, it will have a drag on their operations. Britain has had the drop in its pound, so their currency risk is going to pick up as well. They are highly leveraged at about 126%. The stock is probably going to stay down here for a while.