Hoist Finance AB (HOFI-OME) has a unique position as the only NPL player with a full-scale banking platform, investment grade rating and access to deposit funding. We see a risk in negative consequences from Brexit and potential additional write-downs but find risk reward attractive. We initiate coverage with a Buy recommendation and SEK 40 target price derived using a fair P/B of 0.82x (CoE 11.5% and RoE of 10%) and equal 9x/7x '21e/’22e EPS.
