Background and Justification for the Adjustment
On July 7, 2025, the Swiss major bank UBS updated its rating for ING GROEP N.V. ahead of the quarterly results expected on July 31, raising the price target from €21.50 to €22.50. The rating “Buy” was maintained.
UBS analyst Johan Ekblom justified the price target increase by stating that the business of the Dutch major bank has continued to stabilize and the adjusted pre-tax profit is likely to have risen compared to the previous quarter. However, Ekblom still expects a decline in profit year-on-year. The expectation of initially stable net interest income is particularly highlighted, before it could increase towards the end of the year.
Relevance for Investors
This adjustment is particularly relevant for investors tracking developments in the banking and financial services sector:
- Price Target Increase: The new price target of €22.50 signals increased confidence in ING’s future performance.
- Stability: The stabilization of the business model indicates a robust development despite volatile market conditions.
- Net Interest Income: Expectations for stable to rising net interest income are an important indicator of a bank’s earning power.
Market Context
ING GROEP N.V., as one of the largest financial service providers in Europe (ISIN: NL0011821202), is currently valued at around €17.83 per share (as of July 2025). The new UBS price target is therefore significantly above the current market price and underscores the positive analyst sentiment.
Summary Assessment
The UBS assessment reflects an optimistic outlook: Despite an expected decline year-on-year, UBS expects short-term positive impulses from rising adjusted pre-tax profits and medium-term from increasing net interest income. For investors, this means a clear buy recommendation with attractive upside potential up to the new price target.