Banking firm Banco Santander (ES:SAN) and technology company Amadeus IT Group (ES:AMS) have gained 20% YTD. They even surpassed the 12% return of the IBEX 35 index, which includes the 35 most liquid stocks traded in the Spanish market. Moving forward, these stocks have been rated Buy by analysts and are also well-positioned for further gains in their share prices.
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Here, we have used the TipRanks Stock Screener tool to choose the stocks based on our high growth criteria. Later on, we used the Stock Comparison tool for Spain to compare these stocks on different parameters. These tools make an investor’s life easy with their detailed analysis and updated information on different companies.
Let’s have a look at some details.
Banco Santander, SA
Santander is a leading financial services company in Spain, serving a customer base of 160 million.
The stock is on an upward trajectory and has gained more than 40% in the last six months. The bank is also among the beneficiaries of the rising rate environment.
Last week, Santander posted its financial results for 2022, with higher profits driven by interest rates. The bank delivered a growth of 18% in its profits of €9.61 billion as compared to the previous year. Profits were well supported by revenue growth and tighter cost control. The interest income during the year grew by 15.7% to €38.6 billion, as compared to €33.3 billion in 2021. To be better prepared for challenging times, the bank has raised its net loan loss provisions to €3.03 billion in Q4 from €2.76 billion in the previous quarter.
The bank expects to deliver double-digit growth in its revenues in 2023.
Is Banco Santander a Good Stock to Buy?
Post its earnings, Goldman Sachs analyst Chris Hallam has reiterated his Buy rating on the stock. His target price of €5.20 indicates a huge upside of 47%.
Benjamin Toms from RBC Capital maintained a Hold rating on the stock as he believes that the banks’ “margins will be under pressure for the next 12 months.”
Overall, SAN stock has a Moderate Buy rating on TipRanks, based on six Buy and four Hold recommendations.
The average target price of €4.39 shows a change of 24% from the current price of €3.54.
Amadeus IT Group SA
Amadeus provides technology solutions to the travel industry in more than 190 countries worldwide.
The company is in recovery mode after the pandemic, just like its stock. The stock has been trading up by 24.1% YTD.
With the opening of borders and the relaxation of lockdowns, the travel industry is poised for further recovery, propelling the company’s top-line growth. In its Q3 earnings, the company’s revenue reached 86.8% of the pre-pandemic level of 2019. The group’s revenue for the quarter was €1.2 billion, with recovery in all the segments. The earnings of €450.5 million in the quarter also reached 80% of 2019 levels.
Analysts remain positive on the full-year results, backed by strong operational and financial performance. The company is expected to resume its dividend payments next year.
Ahead of its full-year earnings on February 24, Ben Andrews from Goldman Sachs upgraded his rating from Hold to Buy. He also raised his target price from €65 to €70, implying an upside of 16.6%.
What is the Target Price for Amadeus Share?
According to TipRanks’ analyst consensus, AMS stock has a Moderate Buy rating.
The average price target is €64, which is around 7% higher than the current trading levels.
Conclusion
Investors looking to diversify their portfolio with Spanish equities could hold on to these stocks for long-term growth. Analysts remain bullish on these stocks and expect decent growth in their share prices.
