Avanza Bank (Buy, TP: SEK340.00) - Growth immunity
Avanza’s solid customer growth and activity trends held up well during Q3 despite societal normalisation and a successful vaccination drive, which we believe indicates that concerns the earnings surge during the pandemic was temporary are overdone. Our earnings forecasts are broadly intact ahead of the Q3 results, and we reiterate our BUY, with a raised SEK340 (330) target price. We find Avanza’s premium valuation at c27x 2022e EPS justified by its solid growth outlook and high profitability. We are c20% above consensus on 2022e earnings.Avanza Bank Holding is the holding company of the Avanza Bank Group. Co.'s offerings comprise of: brokerage services, which enable investments in Swedish and foreign equities, bonds, funds, derivative financial instruments including futures, warrants and options, investment advisory services, pension products, pension insurance, as well as capital insurance services. Co. targets private individuals, high net-worth customers, corporate customers, day traders, fund managers and institutions.
DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.
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