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Banco Santander has emerged as Europe's most highly capitalized bank, with a market capitalization nearly doubling since 2022, driven by a robust Spanish economy and strategic management decisions. Profits for the first nine months of 2024 reached €9.3 billion, a 14% increase year-on-year, supported by a 7% rise in sales and improved cost management. Analysts project a price target of €5.7, indicating a potential 21% upside from current levels, as the stock appears poised for a new upward trend.
IG
At the 9th Annual Private Banking Conference & Awards in Zurich, Dr. Stefan Gerlach, chief economist at EFG Private Bank, highlighted the mixed state of the global economy, noting slight growth in some areas and rising debt in others. He criticized Trump's bold yet contradictory policies, such as banking deregulation and immigration tightening, which could impact the labor market. In Europe, while Switzerland shows robust growth, Germany remains stagnant, and public deficits continue to pose significant challenges, despite strong performances from previously struggling countries like Spain, Portugal, Greece, and Ireland.
Nestlé has partnered with Damm to manufacture and distribute Nestea in Spain, Andorra, and Gibraltar starting in 2025. Damm will produce the full range of Nestea flavors at its Valencia factory, enhancing its product portfolio and supporting the brand's growth in the non-carbonated drinks segment. The first Nestea units will be available from January 1, 2025.
Pernod Ricard, the leading global producer of premium wines and spirits, reported that 61.8% of its sales come from strategic international brands, with Absolut and Jameson being top sellers. The company operates 94 production sites worldwide, with sales distributed across Europe (28.3%), the Americas (28.8%), and other regions (42.9%).
UBS has downgraded Aena SME SA to a "neutral" rating from "buy," citing concerns over future profitability and a projected low EBITDA growth rate of just 2% from 2024 to 2028. The report highlights challenges such as expected tariff reductions and increased capital expenditures under the DORA III regulatory framework, which may pressure margins and free cash flow yields. Despite a strong market position and a competitive dividend yield, UBS's cautious outlook has led to a slight increase in the 12-month price target to €215 from €210.
UBS has downgraded Aena SME SA to a "neutral" rating from "buy," citing concerns over future profitability and a projected low EBITDA growth rate of just 2% from 2024 to 2028. The report highlights challenges such as expected tariff reductions and increased capital expenditures under the DORA III regulatory framework, which may pressure margins and free cash flow yields. Despite a slight increase in the 12-month price target to €215, UBS remains cautious about Aena's short-term re-rating potential.
Bitget is set to establish a regional hub in Lithuania to comply with the upcoming Markets in Crypto-Assets (MiCA) regulations, enhancing its commitment to regulatory standards. The exchange, already licensed in multiple countries, aims to support crypto innovation and startups in the EU while expanding its services globally. Recently, Bitget Wallet has seen significant growth, doubling its user base to 40 million, and the company has also formed sports partnerships, including with Spain's LALIGA.
UBS has maintained a "Neutral" rating for Inditex, setting a target price of 48 euros following disappointing third-quarter results. Analyst Sreedhar Mahamkali noted that net sales and growth in local currencies fell short of market expectations, suggesting a potential decline in share price after a strong increase this year.
Industria de Diseño Textil, S.A. (Inditex) focuses on designing, manufacturing, and distributing clothing and accessories across five product families: apparel, lingerie, footwear, accessories, and household goods. As of January 2024, the company operates 5,692 stores, with sales primarily from directly-operated stores and online channels, accounting for 91.4% of revenue. Geographically, sales are distributed with 15.8% in Spain, 51.1% in Europe, 19.8% in the Americas, and 13.3% in other regions.
UBS has maintained a 'Neutral' rating for Inditex, setting a target price of 48 euros following disappointing third-quarter figures. Analyst Sreedhar Mahamkali noted that net sales and local currency growth fell short of market expectations, suggesting a potential decline in share price after a strong rise this year.
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