1008 GMT - Santander needs higher returns from its Brazil and U.S. activities to raise the bar as these two key units are dragging on the group and limiting valuation upside, UBS says in a research note. "With the stock halving its relative discount this year and trading around its 10-year average, the debate shifts to what can bring SAN back fully in line with the sector's valuation, something that has not occurred since 2H20 alongside," analysts Ignacio Cerezo and Alvaro Fernandez-Garayzabal write. The most effective strategies to facilitate an additional rerating would be a step-up in profitability in Brazil and the U.S.--though this seems unlikely for now--and getting capital management right, which is perhaps more important, they add. Shares are up 46% year to date. (elena.vardon@wsj.com)
(END) Dow Jones Newswires
March 25, 2025 06:08 ET (10:08 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.