Opinions Darren Sissons
ING Groep NVINGHOLDNov 22, 2017
Stock price when the opinion was issued
As of Jun 10, 2026. Market Open.
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Premium contentAs management just boosted its income guidance after 2nd quarter results beat expectations with strong results in retail and wholesale divisions, we reiterate ING as a TOP PICK. The company is prudently using some cash reserves to aggressively retire debt. It trades at 8x earnings and right at book value. We recommend maintaining a tight stop at $15.50, looking to achieve $20.00 -- upside potential of 19%. Yield 6.6%
(Analysts’ price target is $19.84)Premium contentPremium contentPure retail. Long-term holding. Trades at 10x earnings. Healthy dividend with excellent ongoing growth. Totally clean balance sheet, under-levered, room for growth. Great opportunity to participate in Europe.
Lorne SteinbergPremium contentWith recently reported earnings showing income up 32% over the year, we reiterate ING as a TOP PICK. It trades at 8x earnings, under book value and supports a ROE of 29%. Its dividend is backed by a payout ratio under 35% of cash flow. It added over 11 billion euros in new deposits and their customer base continue to grow. We continue to recommend a stop at $12.50, with upside to $19.00 -- potential of 38%. Yield 4.3%
(Analysts’ price target is $19.14)Premium contentWe reiterate ING as a TOP PICK. Their share buyback program has achieved almost 90% of its target. It trades at 8x earnings, under book value and supports a ROE of 14% (good for a bank). It pays a nice dividend, backed by a payout ratio under 35% of cash flow. It has been prudently using some cash reserves to aggressively retire debt and buy back shares. We continue to recommend a stop at $12.50, looking to achieve $19 -- upside potential of 35%. Yield 5.3%
(Analysts’ price target is $19.62)
Pure retail bank in the Netherlands, Germany, and Belgium. In a mess after the financial crisis. Over-capitalized, extremely well run, boring, profitable. Buying back shares. Best-run European bank. Yield is 5.5%.
(Analysts’ price target is $18.33)Lorne SteinbergPremium contentThis Netherlands based global bank trades below book value and supports a 25% ROE. Higher interest rates are helping its bottom line, which has allowed the company to initiate a share buyback program, while it has also retired debt aggressively. It is paying a good yield, backed by a payout ratio under 50% of cash flow. We recommend placing a stop-loss at $12.50, looking to achieve $18.00 -- upside potential of 20%. Yield 4.0%
(Analysts’ price target is $18.35)
Lorne Steinberg
Sell ING or European telcos? The 1st question would be which telcos. However, the broader story on European telcos is different than what is happening in Canada or the US. Fibre to the home is being built out in Europe, and for the 1st time in about 12 years, European telcos are growing revenues and earnings. Thinks there is still a little upside in the telcos. Regarding financials in Europe, the big driver is going to be higher rates. Higher rates are going to be good for financials, so there is a little more room to run on ING. The balance sheet was freshly recapitalized. They sold off some assets. There is probably upside here as well.