Sabadell is undervalued with respect to its books. Target Price set at 0.20€ with error margin of 10% (down to 0.18€ level), being it 0.13 times its book value. Expecting to reach it on June 8 and from there, launching a 50-60% pull-back until June 16. After that, hostile territory. It can either correct downwards or take off up to 0.4-0.47 level.
Interesting performance of the bank. Spanish socialist-left political environment, Brexit and IRPH trial results to be known either next week or the first of February may affect negatively the company. However, in June 2019 news of Sabadell reducing its exposition -43% to IRPH and expecting an impact of €800 million instead of €1,600 million from Bankia or €6,446...
