NOFI has rebounded sharply after dropping to NOK 34 in mid-March, and after reporting a 16% ROE in Q1 despite taking NOK 620m in loan loss provisions there should be more upside here. Primarily due to lower expected growth medium term our EPS comes down 3% for 2020, while 2021 is unchanged and we model NOK 10.1 for 2022. NOFI remains well capitalized and highly profitable even now, and we reiterate our Buy rec. and NOK 80 target price.
Sign up to access
Get access to our full offering from over 30 providers
Get access to our full offering from over 30 providers
16% ROE despite higher losses, P/E ’21e 6x
- Published:
01 May 2020 -
Author:
Roy Tilley -
Pages:
13
NOFI has rebounded sharply after dropping to NOK 34 in mid-March, and after reporting a 16% ROE in Q1 despite taking NOK 620m in loan loss provisions there should be more upside here. Primarily due to lower expected growth medium term our EPS comes down 3% for 2020, while 2021 is unchanged and we model NOK 10.1 for 2022. NOFI remains well capitalized and highly profitable even now, and we reiterate our Buy rec. and NOK 80 target price.