UBS Forecasts 9% Growth in CaixaBank’s Net Interest Income

UBS has upgraded its recommendation for CaixaBank stock from "Neutral" to "Buy" and raised the target price to €14.90 from €12.40, following the stock's underperformance relative to peers, which narrowed the valuation gap.

The bank believes that a "higher-for-longer" interest rate environment and growth in corporate lending could support the bank's performance.

UBS projects earnings per share (EPS) growth of approximately 12% annually through 2027–2028, alongside a 9% rise in net interest income, driven by loan and deposit growth, improved customer margins, and the reinvestment of low-yielding bonds.