15 handpicked stocks

European Bank Targets: M&A Risks and Opportunities

BBVA's hostile takeover bid for Sabadell has been rejected by the latter's board, signaling a potential wave of mergers and acquisitions in the European banking sector. This theme focuses on financial institutions that could be involved in or benefit from increased M&A activity.

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Author avatar

Han Tan | Market Analyst

Published on September 12

Top Picks from This Group

Here are a few of the assets in this group. Create an account to unlock the full list.

BBVA

Banco Bilbao Vizcaya Argentaria, S.A.

BBVA

Current price

$19.07

Spanish banking giant at the centre of the M&A catalyst, actively pursuing strategic acquisitions to enhance scale and market position.

SAN

Banco Santander, S.A.

SAN

Current price

$10.05

Major European bank well-positioned to participate in consolidation activity as either acquirer or strategic partner.

DB

Deutsche Bank AG

DB

Current price

$37.16

German banking leader with investment banking capabilities to benefit from increased M&A advisory fees and deal-making activity.

12 Month Growth Potential

Use the growth calculator to see how much investing in these assets could return over one year, based on aggregated analyst sentiment provided by Refinitive Ltd.

If you invested across these assets:

In 12 months it might be worth:

$1,000.00

+9.09%

About This Group of Stocks

1

Our Expert Thinking

BBVA's rejected takeover bid for Sabadell has sparked expectations of broader consolidation across European banking. This creates opportunities for potential acquirers seeking strategic growth, undervalued banks that may become targets, and advisory firms facilitating these complex transactions.

2

What You Need to Know

This group includes financial institutions positioned across three key areas: established banks with acquisition capabilities, potentially undervalued targets, and investment banks that profit from deal-making activity. M&A waves often lead to share price re-ratings and increased fee income.

3

Why These Stocks

These financial institutions were handpicked by professional analysts based on their strategic positioning to participate in or benefit from anticipated European banking consolidation. Each represents exposure to different aspects of the M&A opportunity.

Group Performance Snapshot

9.09%

Average 12 Month Profit

On average, analysts expect assets in this group to grow 9.09% over the next year.

13 of 15

Stocks Rated Buy by Analysts

13 of 15 assets in this group are rated Buy by professional analysts.

Source: Analyst sentiment is provided by Refinitiv Ltd, a global leader in financial market data with over 40k business clients. Refinitiv Ltd is an independent third party to Nemo. This is not advice.

Why You'll Want to Watch These Stocks

🎯

M&A Catalyst in Motion

BBVA's rejected takeover bid has set the stage for broader European banking consolidation. This high-profile move often triggers a domino effect, drawing attention to other potential deals and targets.

💰

Fee Income Explosion

Investment banks and advisory firms stand to generate massive fee income from facilitating complex banking mergers. A single major deal can boost quarterly earnings significantly.

📈

Valuation Re-Rating Opportunity

Target banks often see their share prices jump when M&A speculation increases. Even rumours of potential deals can lead to substantial price movements as investors position for takeover premiums.

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