Pareto Securities repeats its Buy recommendation for niche bank Noba and raises its price target to SEK 115 from SEK 110 ahead of the third-quarter report on November 3.
Pareto raises its earnings per share forecasts by 1-2 percent for 2026-2028, mainly as a result of foreign exchange-driven lending growth.
Following extensive investments in 2026, cost increases are expected to level off next year. Pareto expects Noba to achieve its target of a cost-to-income ratio below 20 percent in 2027.
The research house forecasts average annual earnings growth of 17 percent in 2026–2028, supported by lending growth of more than 10 percent and continued improvements in credit losses.
Return on equity is expected to reach 19.8 percent in 2028.
Pareto also sees a possible share buyback programme as a positive share price catalyst, while lower cost growth is expected to strengthen profitability.
