JPM resumes Santander at 'neutral' on balanced risk-reward, 'stretched' forecasts

** J.P. Morgan reinstates Spanish bank Santander SAN.MC at "neutral" noting a balanced risk-reward profile after a rapid valuation recovery

** Pointing to 24-month forward P/E estimates, JPM says Santander has re-rated faster than its regional peers; the broker places the multiple at 9.5x

** JPM sets PT at €12.60 against the shares' Friday closing price of €11.81

** The market consensus has aligned with the lender's 2028 net profit target of about €20 bln ($22.38 billion), JPM says, but sees this as a "stretch" with its own forecast of €18.2 bln

** It says a weak macroeconomic backdrop in Brazil alongside a lack of organic loan and deposit growth in the US and Britain weigh on sentiment

** Out of 26 analysts covering Banco Santander, 20 rate it "strong buy" or "buy",​ 5 "hold" and 1 "sell" - LSEG data

($1 = 0.8938 euros)