Svenska Handelsbanken (Buy, TP: SEK142.00) - Green shoots on capital and costs
We found new CEO Michael Green’s first results presentation encouraging, with greater clarity on capital ambitions and an emphasis on increased cost focus. The board proposed a generous 2023 DPS of SEK13; we forecast 2024–2026e DPS of SEK11-12, offering 9-12% dividend yields for the years ahead. Given SHB’s impressive long-term track record, conservative approach and overcapitalised balance sheet, we still see an attractive risk/reward at a 2025e P/E of 8.4x adjusted for the 2023 DPS (due 21 March). We reiterate our BUY and have raised our target price to SEK142 (140).
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.