US banking giant JP Morgan has updated its recommendations for several Nordic banks ahead of 2027. The bank sees improved earnings prospects but at the same time warns of pressured lending margins due to fierce competition, particularly in Norway.
Danske Bank is upgraded to overweight from neutral, and the price target is raised by 25 percent to 424 Danish kronor. JP Morgan points to an attractive valuation compared with other Nordic banks.
Noba Bank is also upgraded to overweight from neutral, with a price target of 119 kronor. The upgrade is justified by improved earnings growth and loan growth.
Handelsbanken is upgraded to neutral from underweight, while the price target is raised by 23 percent to 159 kronor. JP Morgan highlights the bank’s defensive earnings profile and high dividend yield, but notes that its growth prospects and returns are weaker than those of its competitors.
JP Morgan meanwhile maintains an underweight rating on Nordea and SEB, while DNB and Swedbank retain their neutral recommendations.
The bank also points to uncertainty surrounding capital distributions, as well as political pressure on Swedish banks and the risk of further taxation of the sector.
