Collector Bank (Hold, TP: SEK25.00) - Come back in a year
We expect no great surprises in the Q3 results, with lending volumes, margins and credit losses all remaining relatively stable. In the past month, the stock has fallen c25% on likely increased perceived tail risk in the junior real estate loan portfolio. While we find it unlikely that real estate defaults will bring considerable credit losses, we remain realistic about the downside potential in the event of turbulence, particularly in 2023. Accounting for higher interest rates and required returns, we have cut our target price to SEK25 (35), while we reiterate our HOLD.Collector AB is a Sweden-based company engaged in the financial industry. The Company provides financial services, credit management and payment solutions primarily in the domestic market, Norway and Finland. It operates through two segments, such as Retail and Corporate. The Retail segment provides personal loans, credit cards and retail financing solutions for e-commerce and retail chains, as well as savings accounts through online services. The Corporate segment is responsible for the factoring and corporate lending to small and medium-sized enterprises, real estate credits and debt collection on behalf of clients, as well as acquires and manages portfolios of overdue or written off receivables.
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.