Nordnet (Buy, TP: SEK155.00) - NII cushion offers growth resilience
Growth in fund-related income and brokerage activity is, in our view, likely to remain muted until the equity market recovers. Nevertheless, higher NII is starting to offset the slower commission growth, and we expect even greater NII growth in Q4 than in Q3. We still find the valuation attractive at a 2023e P/E of c17x, given Nordnet’s still attractive outlook for profitable growth in Nordic savings. Due to the rise in transaction-related fees in Q3, we have raised our 2023–2024e EPS by 3–5%. As a result, we have increased our target price to SEK155 (146) and reiterate our BUY.
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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