Our EPS for 2020/2021 come down 27%/18% on the back of a 5% reduction in revenue estimates and higher expected loan losses. NDA has a well diversified lending book both in terms of sectors and geography and should also benefit somewhat from de-risking in recent years. Estimate uncertainty is however very high at the moment, with the outcome dependant on how long the current situation persists. We reiterate Buy, but lower our 12m TP to SEK 70 (90).
19 Apr 2020
Estimates down 27%/18%, but still good value
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Estimates down 27%/18%, but still good value
Our EPS for 2020/2021 come down 27%/18% on the back of a 5% reduction in revenue estimates and higher expected loan losses. NDA has a well diversified lending book both in terms of sectors and geography and should also benefit somewhat from de-risking in recent years. Estimate uncertainty is however very high at the moment, with the outcome dependant on how long the current situation persists. We reiterate Buy, but lower our 12m TP to SEK 70 (90).