Sparebanken Møre (MORG) presented a strong Q2 EPS of NOK 7.2, but the surprisingly weak NII overshadowed the report. We had also expected increased provisions within offshore and this uncertainty remains a weakness in our view. We have increased 2020e EPS 19%, but lowered 2021e/2022e EPS 4%. We lower our target price to NOK 280 (290) but retain our Hold recommendation. The new TP is equivalent to 11x 2021e EPS and 0.85x 2020e BV.
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Unusually weak
Sparebanken Møre (MORG) presented a strong Q2 EPS of NOK 7.2, but the surprisingly weak NII overshadowed the report. We had also expected increased provisions within offshore and this uncertainty remains a weakness in our view. We have increased 2020e EPS 19%, but lowered 2021e/2022e EPS 4%. We lower our target price to NOK 280 (290) but retain our Hold recommendation. The new TP is equivalent to 11x 2021e EPS and 0.85x 2020e BV.