We had expected a Q2 rebound but underestimated the scale of it as NOFI delivered a very solid Q2 report. Though some effects (on cost and net value changes) look somewhat temporary, a 24.5% ROE is nothing to scoff at. On the back of the report we increase NII 1%, lower opex slightly and lower our loan loss estimates. Our EPS is lifted 16%/7%/5% for 20/21/22, leading us to also lift our target price to NOK 92 (85) and reiterate our Buy recommendation.
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Estimates up after show of strength in Q2
- Published:
13 Aug 2020 -
Author:
Roy Tilley -
Pages:
13
We had expected a Q2 rebound but underestimated the scale of it as NOFI delivered a very solid Q2 report. Though some effects (on cost and net value changes) look somewhat temporary, a 24.5% ROE is nothing to scoff at. On the back of the report we increase NII 1%, lower opex slightly and lower our loan loss estimates. Our EPS is lifted 16%/7%/5% for 20/21/22, leading us to also lift our target price to NOK 92 (85) and reiterate our Buy recommendation.