Opinions David Dietze
ING Groep NVINGBUYApr 27, 2018
David DietzeStock price when the opinion was issued
As of May 29, 2026. Market Open.
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Premium content
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 Steinberg
Premium 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
He is positive on them with the rising interest rate scenario and thinks it is trading below book value. If you think the global economy is going to continue, this is well leveraged to that recovery.