MADRID (MarketWatch) -- Spanish banking group BBVA SA was downgraded to sell from neutral on Friday at
UBS, which said domestic headwinds are a challenge to the group's valuation premium. UBS said shares are currently trading 17% above its new price target of 6 euros, lowered from a prior 6.20 euros. UBS analysts said they have cut their earnings forecasts by 18% in 2012 and 14% in 2013, mostly to incorporate the €3.4 billion ($4.46 billion) mandatory convertible bonds, higher loan-loss provisions and Spanish real estate write-downs. UBS said new regulations on provisions for real estate and construction lending due soon may lead to further earnings revisions. On Thursday, BBVA swung to a fourth-quarter loss after taking a €1 billion U.S. goodwill charge.Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
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