On Tuesday, Deutsche Bank analysts showed confidence in Banco Bilbao (NYSE:BBVA) Vizcaya Argentaria SA (BBVA:SM) (NYSE: BME:BBVA), as they increased the bank’s price target to EUR 14.10 from EUR 13.95, while reaffirming a Buy rating on the stock. This adjustment reflects the bank’s robust financial results for the first quarter of 2025. The stock has demonstrated remarkable momentum, with a 60% surge over the past six months, and currently trades at $14.48. According to InvestingPro analysis, BBVA appears to be fairly valued at current levels.
BBVA reported a Return on Tangible Equity (RoTE) of above 20% for the quarter, a figure that significantly surpasses that of most of its competitors. According to Deutsche Bank, this level of performance is becoming more normalized for the bank, highlighting its resilience amidst various economic challenges, including foreign exchange fluctuations. With a P/E ratio of 7.41 and an attractive dividend yield of 5.13%, BBVA has maintained dividend payments for 35 consecutive years, as noted in InvestingPro’s analysis.
The Spanish financial institution has also demonstrated strong performance in its domestic market, further solidifying its position. Deutsche Bank pointed out that BBVA has effectively leveraged its group synergies, which has helped mitigate the impact of concerns related to tariffs and market volatility, particularly in its operations in Mexico and Turkey.
Despite the positive outlook and the raised price target, the analyst noted that uncertainties in the global financial landscape persist. These include potential risks that could affect BBVA’s future performance, although specifics on these risks were not detailed in the current context.
BBVA’s share price is expected to respond to this updated financial guidance from Deutsche Bank, as investors consider the bank’s ability to maintain its strong financial performance and navigate through economic uncertainties.
In other recent news, Banco Bilbao Vizcaya Argentaria (BBVA) has been the subject of various financial evaluations and adjustments. Moody’s Ratings has placed BBVA’s senior unsecured debt and long-term issuer ratings under review for a potential upgrade due to improvements in the bank’s credit profile, particularly in profitability. This review will also consider the implications of BBVA’s ongoing acquisition offer for Banco Sabadell. Meanwhile, Kepler Cheuvreux has upgraded BBVA’s stock rating from Reduce to Hold, citing strong growth in Mexico and a promising shift in Turkey, despite challenges in Spain. Additionally, Fitch Ratings has revised the outlook for BBVA Mexico and BBVA Peru’s Long-Term Issuer Default Ratings to Positive from Stable, reflecting recent changes in the parent company’s ratings.
Citi analysts have increased their price target for BBVA shares to €14.00 and maintained a Buy rating, highlighting anticipated higher profits across key regions. The analysts have revised their earnings per share estimates upwards by an average of 8% for 2025–2027, noting strong earnings from Spain, Mexico, and Turkey. BBVA is expected to achieve a return on tangible equity of 18% on average over the next three years, with projected annual returns to shareholders through dividends and buybacks equating to an 8% yield. This financial outlook supports Citi’s positive stance on BBVA’s stock.
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