Banco Santander has secured US Federal Reserve approval for its planned €12.2 billion acquisition of Webster, drawing fresh attention to the stock. The share price has climbed recently, with a 30-day return of 8.5% and a 90-day return of 22.9%, while the one-year total shareholder return stands at 64.9% and the five-year return exceeds 3.5 times. Analysts have a consensus price target of €13.04 per share, compared with a recent close of €12.86, implying the stock is about 1.4% undervalued. The target is based on expectations that by 2029 revenues will reach €73.6 billion, earnings will hit €20.9 billion, and the stock will trade on a price-to-earnings ratio of 9.6 times, using a discount rate of 8.4%. Some investors may wait for a pullback after the strong run, while others view the current valuation as acceptable for new money.
