Stephen Simpson, CFA
Long only, growth at reasonable price, value, research analyst

Santander Looks Pricey Relative To Its Capital And Growth Prospects

The economy in Spain has been looking a little better and that has led Spanish banking shares to do quite a lot better, with Bankia up close to 120%, CaixaBank up about 90% and the big boys BBVA (NYSE:BBVA) and Santander (NYSE:SAN) up around 60%. Credit recovery can be a powerful factor in bank stock appreciation and incoming bad credits in Spain are getting better for Santander. On the other hand, Santander Mexico (NYSE:BSMX) hasn't been doing as well as I'd hoped, Santander Brasil (NYSE:BSBR) is losing share, and the company's credit position is still quite weak relative to other large banks. These shares already seem to reflect a lot of optimism...

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