As detailed in our sector report we raise our targets for the Norwegian banks as we see the firmer macro outlook, potential for a late-2021 rate hike and more clarity on dividends as drivers for a rerating. Our estimate changes are more modest, but we now expect an EPS of NOK 9.6/10.8 for 2021/2022 respectively. With an ROE around 10% we believe this warrants a higher valuation and lift our TP to NOK 118 (88) and reiterate our Buy recommendation.
17 Jan 2021
Stage set for a better valuation
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Stage set for a better valuation
SpareBank 1 SR-Bank ASA (SRBNK:OSL) | 0 0 0.0%
- Published:
17 Jan 2021 -
Author:
Joakim Svingen | Roy Tilley -
Pages:
11
As detailed in our sector report we raise our targets for the Norwegian banks as we see the firmer macro outlook, potential for a late-2021 rate hike and more clarity on dividends as drivers for a rerating. Our estimate changes are more modest, but we now expect an EPS of NOK 9.6/10.8 for 2021/2022 respectively. With an ROE around 10% we believe this warrants a higher valuation and lift our TP to NOK 118 (88) and reiterate our Buy recommendation.