{"id":664709,"date":"2026-11-02T16:34:24","date_gmt":"2026-11-02T16:34:24","guid":{"rendered":"https:\/\/www.newsbeep.com\/il\/664709\/"},"modified":"2026-11-02T16:34:24","modified_gmt":"2026-11-02T16:34:24","slug":"morgan-stanley-names-caixabank-top-pick-on-expected-net-interest-income-rebound","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/il\/664709\/","title":{"rendered":"Morgan Stanley names CaixaBank top pick on expected net interest income rebound"},"content":{"rendered":"\n

Investing.com — Morgan Stanley Research raised Spanish bank CaixaBank to “overweight” from “equal-weight” and named it a top pick, saying weaker interest income at Spanish banks reflects a lag in loan re-pricing rather than tougher competition for deposits. <\/p>\n

Still guessing which stocks will beat the market? Our AI portfolio updates monthly and is outperforming the S&P 500 by 118%. See this month’s list \u00bb<\/a> <\/p>\n

The broker lifted its price target to \u20ac14 from \u20ac13.80, saying lower capital consumption drove the increase while its 2028 earnings forecast is unchanged. <\/p>\n

The stock is down 15% from its peak, which Morgan Stanley linked to a sell-off in sovereign bonds, worries over deposit competition and earnings risk. <\/p>\n

With the short-term risk to third-quarter consensus passed, it sees the decline as a chance to buy one of Europe’s top franchises. <\/p>\n

CaixaBank’s third-quarter attributable profit beat analyst expectations by 7.5%, rising 21.7% from a year earlier to \u20ac1.76 billion, while Morgan Stanley expects a strong recovery in net interest income from 2027 as loan repricing and maturing swaps support growth. <\/p>\n

Net interest income was \u20ac2.80 billion, 0.8% below consensus of \u20ac2.82 billion, while banking fees of \u20ac490 million missed expectations by 1.2%. <\/p>\n

Morgan Stanley attributed lower third-quarter deposit volumes to interest rate increases, as seen in 2023, and expects growth to recover to 3%-4% over the coming months. <\/p>\n

Unsure what to buy ahead of earnings? Our AI’s recent pre-earnings calls delivered gains of +77% to +118% after results dropped. See this month’s earnings picks \u00bb<\/a> <\/p>\n

Combined with the maturity of \u20ac13.3 billion in negative-yielding swaps in the first quarter of 2027, this should drive the strongest net interest income growth in the sector, at 17% in 2027 and 9% in 2028, it said. <\/p>\n

The broker trimmed its net interest income forecasts to reflect weaker deposit volumes in the quarter but still expects loans and deposits to grow by an average of 4%-5%, with its 2027 and 2028 estimates remaining above consensus. <\/p>\n

Spain’s average deposit yield rose 7.5 basis points from the previous quarter, compared with an approximately 28-basis-point increase in Euribor, which Morgan Stanley described as normal rate pass-through. <\/p>\n

Top one-year term deposit offers in Spain stand at around 3%, in line with the interest rate outlook, it said. <\/p>\n

CaixaBank’s liquidity coverage ratio of 193%, among the highest in Europe, also leaves it well positioned to avoid the funding pressures seen in the UK, Morgan Stanley said. <\/p>\n","protected":false},"excerpt":{"rendered":"Investing.com — Morgan Stanley Research raised Spanish bank CaixaBank to “overweight” from “equal-weight” and named it a top…\n","protected":false},"author":2,"featured_media":664710,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[6638,114,357,184,268,13368,85,4141,13516,9445,46,2450,8553,9331,266,13517,4861,688,5615,13369,13370,5268,13518,270,13519],"class_list":["post-664709","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-401k","tag-business","tag-business-news","tag-economy","tag-finance","tag-financial-information","tag-il","tag-investing","tag-investment-tools","tag-investor","tag-israel","tag-market-news","tag-mortgage","tag-mutual-funds","tag-personal-finance","tag-quote","tag-real-estate","tag-retirement","tag-stock","tag-stock-research","tag-stock-valuation","tag-stocks","tag-suze-orman","tag-tax","tag-track-portfolio"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/664709","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=664709"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/664709\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/664710"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=664709"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=664709"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=664709"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}