Santander (SAN) and Webster Deal Faces Execution Risk, Says Morgan Stanley

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Morgan Stanley downgraded Banco Santander (SAN) to Equalweight due to limited upside after a recent stock surge and increased execution risk concerning its acquisition of Webster Financial. The firm projects lower returns and more ambitious earnings increases from the Webster acquisition compared to Santander’s expectations, highlighting substantial cost synergy assumptions. Despite this, Santander also announced a €5 billion share repurchase program.

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