Rate hikes set to provide relief
On growing confidence of interest rate hikes in Sweden this year, we have included in our forecasts the expected net positive contributions from higher rates to NII. This has led to EPS estimate upgrades of up to 10% for those set to gain the most (SEB, Swedbank). We still believe Swedish residential prices and mortgage margins carry downside risk, but that this is largely priced in as share prices have de-rated. We have changed our 6–12-month sector view from negative to positive, with upgrades for SEB (from SELL to BUY), SHB (from SELL to HOLD) and Swedbank (from SELL to HOLD).
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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