UBS repeats its Buy rating on Nordea and raises its target price to SEK 225 from SEK 210, according to a research note.
The research house believes it is right to prioritise organic growth over share buybacks, particularly with a return on tangible equity of around 18 percent.
UBS expects net interest income to rise 2 percent in the third quarter, while profit before tax is expected to be EUR 1.59 billion.
The analysts lower their earnings forecasts for 2026-2027 by around 2 percent. This is stated to be primarily due to lower revenue from market valuations, somewhat lower commission income and reduced assumptions regarding share buybacks.
Nordea trades at a P/E ratio of 10.9 based on 2027, around a 4 percent discount to similar Nordic banks. UBS continues to see support from the high profitability and believes that growth creates value despite lower buybacks.
