Updated Oct. 27, 2023 6:34 pm ET
The latest Market Talks covering Financial Services. Exclusively on Dow Jones Newswires at 4:20 ET, 12:20 ET and 16:50 ET.
0942 ET – Swedbank shares underperformed the sector by around 6% when it reported 3Q results Thursday, as net interest income missed consensus expectations and management gave cautious guidance, Berenberg analyst Hugh Moorhead says in a note. While quarterly net interest income may have peaked, the medium-term benefits of higher-for-longer interest rates remain substantial, he adds. Moreover, the bank remains well-provisioned, including against its real estate exposures, and has robust capital buffers. Trading at a 10% premium to the sector, its valuation is undemanding for an expected 17% return on tangible equity over 2023-2025, he adds. Berenberg rates the stock buy with a SEK240 price target. Shares trade 0.9% higher at SEK179.95 after closing 6.9% lower following earnings yesterday. (dominic.chopping@wsj.com)
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