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Barclays Upgrades Banco Bilbao Vizcaya Argentaria To Equal Weight

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Barclays Upgrades Banco Bilbao Vizcaya Argentaria To Equal Weight

Barclays has upgraded Banco Bilbao Vizcaya Argentaria SA (ADR) (NYSE: BBVA) to Equal Weight from Underweight, saying that currency headwinds are offsetting the bank's "good" operational performance.

"We expect these currency headwinds to reduce in 2H16 and more materially in early 2017, making underlying business performance more evident, particularly the strength of its Mexican operations," analyst Rohith Chandra-Rajan wrote in a note.

"If there is effective stimulus in the US then this could further boost the performance of BBVA's operations in the US and Mexico," the analyst continued.

Related Link: Barclays Upgrades Banco Santander, Positive On Positioning

In addition, the analyst sees a modest improvement in RoTE and expects a 10-

11 percent RoTE in 2016E-2019 driven by growth in the Mexican business and near-term improvements in domestic credit quality offsetting margin pressure.

Meanwhile, the analyst highlighted Spain elections, Brexit impact and Turkey political situation as key risks.

At time of writing, ADRs of Banco Bilbao were down 1.34 percent at $6.28.

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Latest Ratings for BBVA

DateFirmActionFromTo
Feb 2020RedburnReinstatesNeutral
Nov 2016JefferiesDowngradesBuyHold
Oct 2016RBC CapitalUpgradesSector PerformOutperform

View More Analyst Ratings for BBVA
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