Historic Rally in European Banks: European bank equities have surged in 2025, with the EURO STOXX Banks Index up 76% year-to-date, marking one of the strongest performances in the sector's history, driven by positive investor sentiment and broad-based gains across all constituents.
Macroeconomic Factors Supporting Growth: The rally is attributed to favorable macroeconomic conditions, including high interest rates supporting margins, strong economic growth, and robust capital buffers, which have allowed banks to increase dividends and share buybacks.
Valuation and Investment Outlook: Despite the significant gains, European banks are still seen as undervalued, with analysts predicting continued double-digit earnings growth and a focus on growth and efficiency in 2026, moving away from rate and credit concerns.
Key Performers and Future Potential: Notable performers include Société Générale and Commerzbank, with analysts highlighting stocks like UBS Group and UniCredit as having substantial upside potential, suggesting that the sector's rally may continue into the future.
Wall Street analysts forecast SAN stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for SAN is 7.40 USD with a low forecast of 4.90 USD and a high forecast of 9.91 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
2 Analyst Rating
Wall Street analysts forecast SAN stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for SAN is 7.40 USD with a low forecast of 4.90 USD and a high forecast of 9.91 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
0 Buy
1 Hold
1 Sell
Moderate Sell
Current: 12.430
Low
4.90
Averages
7.40
High
9.91
Current: 12.430
Low
4.90
Averages
7.40
High
9.91
JPMorgan
Neutral
maintain
$30 -> $38
2026-01-16
Reason
JPMorgan
Price Target
$30 -> $38
AI Analysis
2026-01-16
maintain
Neutral
Reason
JPMorgan raised the firm's price target on Santander Chile to $38 from $30 and keeps a Neutral rating on the shares. The firm adjusted Chilean bank targets as part of a Q4 preview. It sees a "mixed quarter" for the sector amid lower inflation, but says investors will likely ignore that and focus on 2026 guidance and trends for 2027.
Barclays
Overweight -> Equal Weight
downgrade
€85
2026-01-06
Reason
Barclays
Price Target
€85
2026-01-06
downgrade
Overweight -> Equal Weight
Reason
As previously reported, Barclays downgraded Sanofi to Equal Weight from Overweight with an EUR 85 price target as the firm transferred coverage of European large-cap pharma to a new analyst. The downgrade balances a low valuation and "strong" operational outlook with the lack of late stage pipeline opportunities and the approaching Dupixent loss of exclusivity, the analyst tells investors.
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DZ Bank
Buy -> Hold
downgrade
€10
2025-12-19
Reason
DZ Bank
Price Target
€10
2025-12-19
downgrade
Buy -> Hold
Reason
DZ Bank downgraded Banco Santander to Hold from Buy with a EUR 10 price target.
JPMorgan
Overweight -> Neutral
downgrade
2025-12-08
Reason
JPMorgan
Price Target
2025-12-08
downgrade
Overweight -> Neutral
Reason
JPMorgan downgraded Sanofi to Neutral from Overweight with a price target of EUR 95, down from EUR 105. The firm adjusted ratings in the European pharma group as part of its 2026 outlook. It expects sector performance to be driven by pipeline readouts, saying much of the concern around the impact of U.S. price pressure on sector earnings has dissipated in Q4. JPMorgan downgraded companies with a lack of pipeline readouts in 2026.
About SAN
Banco Santander, S.A. is a Spain-based company engaged as a retail and commercial bank. The Banks segments include Continental Europe, the United Kingdom, Latin America and the United States. The Continental Europe segment covers all businesses in the Continental Europe. The United Kingdom segment includes the businesses developed by various units and branches in the country. The Latin America segment embraces all its financial activities conducted through its banks and subsidiaries in the region. The United States segment includes the Intermediate Holding Company (IHC) and its subsidiaries Santander Bank, Banco Santander Puerto Rico, Santander Consumer USA, Banco Santander International, Santander Investment Securities, and the Santander branch in New York. The Company's commercial model satisfies the needs of all types of customers: individuals with various income levels.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
