Sparebanken Vest (SVEG) reported a soft Q1 result with a 7.7% return on equity characterized by increased loan losses and a weak contribution from Frende Forsikring. Since our upgrade on April 14th SVEG is up 10% and trading around 2020e P/B 1x and 11x/9x 2020e/2021e EPS. Hence, following fairly neutral estimate revisions and a less attractive valuation we downgrade to a Hold (Buy) recommendation and keep our target price of NOK 60.
