Pareto Bank (Buy, TP: NOK65.00) - On course for another solid quarter
We expect a Q4 ROE of 13.3%, supported by solid activity and robust asset quality. While expecting some loan redemptions due to residential property project completions, the bank guides for moderate or flat growth in the real estate segment. Hence, despite some NIBOR headwinds, we expect NII to remain high, supported by healthy lending growth and high activity. We continue to find the valuation attractive at a dividend-adjusted 2022e P/E of ~8.0x. With our 2022–2023e EPS up by ~1% and an attractive dividend outlook, we have lifted our target price to NOK65 (62) 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.
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.