Avanza Bank (Buy, TP: SEK350.00) - Yet another record quarter
Although Avanza’s superior earnings in Q1 were boosted by customer activity that we do not consider fully sustainable, we believe that much of the earnings growth was driven by the increased customer base and savings capital, which we expect to lift earnings structurally on a sustainable basis. Looking ahead to 2022e, we have raised our EPS by 5% and are c45% above (pre-Q1) consensus. We find the 2022e P/E of c26x attractive, based on Avanza’s solid growth outlook and high profitability. We reiterate our BUY and have raised our target price to SEK350 (330).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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