Bank of America has removed its buy recommendation on BBVA, citing heightened risks associated with the lender’s operations in Turkey.
The downgrade arrives just days before the Spanish bank is scheduled to release its second-quarter earnings, a period when analysts are actively recalibrating their outlooks on European financials.
The move by the US investment bank reflects growing caution among Wall Street strategists regarding emerging-market exposure.
While BBVA has historically benefited from its strong franchise in Spain and Latin America, its Turkish subsidiary has faced headwinds from local economic volatility and currency fluctuations.
Bank of America’s decision to strip the buy rating signals a shift in risk appetite, suggesting that geopolitical and macroeconomic instability in Turkey is now viewed as a material drag on the group’s overall valuation.
This development adds to a broader trend of analyst caution ahead of the European banking earnings season.