Santander (SAN) and Webster Deal Faces Execution Risk, Says Morgan Stanley

Banco Santander, S.A. (NYSE:SAN) ranks among the best undervalued European stocks to bargain now. On February 4, Morgan Stanley reduced Banco Santander, S.A. (NYSE:SAN) to Equalweight from Overweight, noting constricted upside aft a robust banal surge and accrued execution hazard related to the bank’s maturation successful the United States amid its announced acquisition of Webster Financial.

Morgan Stanley forecasts that the Webster acquisition volition make a instrumentality connected concern of 13% to 14%, which is little than Santander’s stated expectations. The steadfast expects that the transaction volition summation net by 5% to 6% by 2028.

In examination to caller comparable U.S. slope mergers similar Fifth Third Bancorp’s takeover of Capital Bancorp and Huntington Bancshares’ merger with of Cadence Bank, Morgan Stanley characterized these estimates arsenic ambitious since they presume outgo synergies of implicit $800 million, oregon astir 55% of Webster’s outgo base.

Banco Santander, S.A. (NYSE:SAN) besides announced a €5 cardinal stock repurchase, including a important buyback related to the merchantability of its Polish operations, successful enactment with Morgan Stanley’s projections.

Banco Santander, S.A. (NYSE:SAN) is simply a large retail and commercialized slope headquartered successful Spain that has a important marketplace stock successful cardinal European and Americas markets. It specializes successful user and concern lending, deposit-taking, and outgo services, and aggressively manages its superior operation done dividends and stock buybacks.

While we admit the imaginable of SAN arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

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Disclosure: None. This nonfiction is primitively published at Insider Monkey.