Banco Santander, S.A. (NYSE:SAN) is considered one of the best undervalued stocks to buy under $50, according to a recent rating update from RBC Capital. The firm raised the price target for Banco Santander, S.A. to EUR 8.50 from EUR 7.50 while maintaining a Sector Perform rating on the shares.
The rating update came after Banco Santander, S.A. released its results for the first nine months of 2025, showing stable revenue of €46.3 billion and record net fee income, which increased by 4% year-over-year. Operating expenses also decreased by 1%, attributed to the bank’s shift towards a more digital, simpler, and globally integrated model.
During the same period, Banco Santander, S.A. reported €10.337 billion in attributable profit, marking an 11% increase from the previous year and setting a new record for the company. The third quarter of 2025 also saw a record attributable profit of €3.504 billion, representing an 8% year-on-year growth and the sixth consecutive record quarter.
The bank’s customer base grew by over seven million new customers in the past year, reaching a total of 178 million. These strong results were driven by record levels of fee income, increased efficiency gains, solid performance in net interest income, and ongoing improvements in credit quality.
Banco Santander, S.A. operates as a retail and commercial bank in Spain, with segments across Continental Europe, the United Kingdom, Latin America, and the United States. While SAN presents potential as an investment, some AI stocks may offer greater upside potential and lower downside risk.
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Disclosure: None. This article was originally published on Insider Monkey.
