Avanza Bank (Hold, TP: SEK255.00) - Higher rates but de-rated
We believe the Q1 report exposed Avanza’s vulnerability to deteriorating market conditions, reducing customer growth, activity, fund savings and margins. Following years of exceptional growth fuelled by low rates and boisterous stock markets, Avanza appears to be entering a more mature phase, likely justifying a lower valuation. We have raised our 2023–2024e EPS by ~15% after incorporating a 1%-point higher Swedish policy rate, but we reiterate our HOLD and SEK255 target price.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.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.