Swedbank is making two changes to its list of Sector Favorites. Axfood and Catena are being added, while AAK and Balder are leaving the list.
For Axfood, the bank points to consumers’ increased focus on prices benefiting the company’s discount profile. Swedbank expects revenue to increase from SEK 89 billion in 2025 to SEK 100 billion in 2028 and the margin to rise to 4.6% from 4.1%.
Catena is highlighted, among other things, for its exposure to logistics properties and the recovery in e-commerce. According to Swedbank, the stock trades at 0.74 times net asset value, compared with a seven-year average of around 1.4 times.
Swedbank has a Buy rating on both Axfood and Catena, with price targets of SEK 300 and SEK 440, respectively.
