Barclays cuts Sabadell to "underweight" on softer NII outlook

Banco Bilbao Vizcaya Argentaria SA

20/01/2026 09:50

** Barclays downgrades Spanish banking group Banco Sabadell SABE.MC to "underweight" from "equal weight", citing a softer NII outlook

** It finds consensus NII expectations "overly optimistic" due to a skew towards low-margin mortgages and slow corporate lending

** It notes that post-takeover attempt client recapture efforts constrain cost optimisation, making the bank's own cost growth targets appear "ambitious"

** The broker cuts its target price by 3% to 3.30 euros and adds the stock's valuation "leaves little room for disappointment" as it trades in line with peers

** Barclays adds BBVA BBVA.MC and its preferred name Santander SAN.MC offer the most "attractive proposition", supported by solid capital generation and distribution upside, while CaixaBank CABK.MC has predictable returns and Unicaja UNI.MC offers stabilising trends

 (Reporting by Marta Serafinko in Gdansk)

 ((gdansk.newsroom@thomsonreuters.com; +48 58 769 66 00;))