SEB reiterates its Hold rating on credit company Avarda and raises its price target to SEK 219 from 192.
SEB expects continued lending growth in line with the trend during the third quarter, slightly above consensus, as well as support from a favourable mix effect. Avarda is simultaneously trading at a P/E premium of 35 percent to Noba.
The raised price target is justified by a lower cost of equity, but SEB sees limited upside.
