We have only made marginal changes to our estimates ahead of Q3, lifting EPS for 20-22 by ~2%. For Q3 we expect a small improvement q/q on NII and fees combined with lower loan loss provisions to improve the EPS to SEK 2.1. Since our downgrade in July the valuation has improved and at P/E ’21e 9.5x and P/B 1.05x with ~11% ROE for 2021 we think risk/reward looks good. We upgrade to Buy (Hold) and lift our target price to SEK 94 (92).
14 Oct 2020
Estimates up, valuation down. Upgrade to Buy
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Estimates up, valuation down. Upgrade to Buy
- Published:
14 Oct 2020 -
Author:
Joakim Svingen | Roy Tilley -
Pages:
11
We have only made marginal changes to our estimates ahead of Q3, lifting EPS for 20-22 by ~2%. For Q3 we expect a small improvement q/q on NII and fees combined with lower loan loss provisions to improve the EPS to SEK 2.1. Since our downgrade in July the valuation has improved and at P/E ’21e 9.5x and P/B 1.05x with ~11% ROE for 2021 we think risk/reward looks good. We upgrade to Buy (Hold) and lift our target price to SEK 94 (92).