Banco Santander's Acquisition of TSB Boosts Market Position and Financial Performance

Goldman Sachs analyst Chris Hallam maintained a Buy rating on Banco Santander with a price target of €7.60 due to its strategic acquisition of TSB, which is expected to enhance its market position in the UK and generate substantial cost synergies. Citi also assigned a Buy rating with a price target of €7.20. The acquisition is anticipated to boost Santander UK's return on tangible equity and contribute to earnings per share growth. Despite the initial capital impact, the transaction is not expected to affect Santander's distribution policy or its 2025 targets.