0809 GMT - BBVA faces uncertainty from headwinds in Mexico, where it makes two thirds of its profits, and from its hostile takeover bid for peer Sabadell, Alantra Equities says in a research note. While shares in the Spanish lender look inexpensive, visibility on both fronts are key before turning positive on the stock, analyst Francisco Riquel writes. The first 100 days of Mexico's new government will be crucial, he adds, flagging concerns around corporate loan demand and tax hikes, among others. On Sabadell, the bank could face hurdles from the competition regulator if its anti-trust investigation drags out into 2Q 2025. "M&A ambitions should not come at the expense of shareholder value, and we would value positively if BBVA were to walk away if the CNMC puts obstacles," Riquel notes. (elena.vardon@wsj.com)
(END) Dow Jones Newswires
September 30, 2024 04:10 ET (08:10 GMT)
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