RBC cuts Sabadell to 'sector perform' on lack of meaningful catalysts

Banco De Sabadell, S.a

14/11/2025 10:07

** RBC downgrades Spain's Banco de Sabadell SABE.MC to "sector perform" from "outperform", citing a lack of catalysts and risks from geographic overreliance

** "We fail to identify meaningful catalysts for the shares, which now trade at fair value," RBC says, as the lender has gained 70% since the start of the year

** Although Sabadell's exposure to Spain's strong macroeconomic trends is an asset, overreliance on the country is a risk after the sale of its British unit TSB, according to RBC

** "A lack of revenue diversification ... renders Sabadell more vulnerable to potential competition-driven net interest margin compression in its domestic market," the brokerage says

** Despite the downgrade, RBC raises the lender's target price by 8% to 3.30 euros ($3.85), hikes its profit before tax estimates for 2027 by 1%

** Out of 18 analysts that cover Sabadell, seven rate the stock "strong buy" or "buy" and 11 rate it "hold"

($1 = 0.8575 euros)

 (Reporting by Javi West Larrañaga)

 ((javier.west@thomsonreuters.com; +34 918 35 61 12))