UBS raises CaixaBank to 'buy' as stock underperformance narrows gap to peers

By Reuters News

** UBS upgrades CaixaBank CABK.MC to "buy" from "neutral", saying the shares are no longer expensive relative to the Spanish lender's growth and returns profile

** The broker sees CaixaBank as one of the best-positioned Iberian banks, after a 10 percentage-point underperformance since Q2 results left the stock trading broadly in line with domestic peers

** It expects the bank to deliver faster earnings and tangible book value growth than Spanish peers, supported by stronger loan growth, relatively resilient deposit base and higher net interest income

** UBS also sees more than 5% upside to earnings estimates if 12-month Euribor remains near current levels rather than falling to the 2.5% assumed in the broker's forecasts

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