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Opinions Mark Grammer
Banco Santander SASANBUYDec 16, 2016
Mark GrammerStock 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
Looking at the 10-year bond market, we are getting a steeper yield curve, which is good for banks. There was a tremendous run in US bank shares, and that is starting to show up in international markets. Bank stocks have been very, very cheap and unloved. Regulation, in particular, has been swinging harder and harder towards banks, and is now starting to swing back. Earnings are starting to improve. This company has very big exposure to Latin America, but ultimately that should be a good thing. A very well-run bank, but trades at valuations that are close to where it was during the sovereign debt and the financial crisis.