Jefferies lifts Nordea Bank stock target to EUR13.10, keeps Buy rating

Published 17/04/2025, 12:16
Jefferies lifts Nordea Bank stock target to EUR13.10, keeps Buy rating

On Thursday, Jefferies analyst Alexander Demetriou adjusted the price target for Nordea Bank Abp (NDA:SS) (OTC: OTC:NRDBY) shares, raising it to €13.10 from the previous €13.00, while reiterating a Buy rating on the stock. Currently trading at $12.88, the stock has shown impressive momentum with a 25.5% gain year-to-date. This change follows Nordea’s release of their first-quarter results for 2025, which the analyst described as solid. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value estimates.

Nordea Bank’s pre-provision profits surpassed expectations by 4%, attributed to improved net interest income (NII) and reduced costs. Additionally, impairments were lower than anticipated, resulting in a 7% profit before tax (PBT) beat. With a current ROE of 16% and an attractive dividend yield of 6.3%, the bank appears to be on a steady course to achieve its return on equity (ROE) goal of above 15% for the year 2025. InvestingPro data reveals the bank has consistently raised its dividend for three consecutive years.

The bank’s strong financial position was further underscored by its CET1 ratio, which at 15.7% was 20 basis points above forecasts. This indicates that Nordea Bank continues to generate robust capital, an encouraging sign for investors.

In light of these results, Jefferies made slight adjustments to their forecasts for the bank over the coming period. The firm’s decision to increase the price target to €13.10 reflects these minor revisions and their continued confidence in Nordea Bank’s performance trajectory. The analyst’s commentary highlighted the bank’s consistent delivery on key financial targets and its strong capital generation as reasons for maintaining the Buy rating.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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