Jefferies lifts SEB stock rating, raises price target to SEK140

Published 30/04/2025, 06:30
Jefferies lifts SEB stock rating, raises price target to SEK140

On Wednesday, Skandinaviska Enskilda Banken AB (SEBA:SS) (OTC: SKVKY), commonly abbreviated as SEB, experienced a change in stock rating from Jefferies, a global investment banking firm. Analyst Alexander Demetriou at Jefferies upgraded the bank’s stock from Underperform to Hold and adjusted the price target to SEK 140.00, up from the previous SEK 135.00.

The upgrade by Jefferies came after a notable decline in SEB’s share price, which saw about a 20% drop since March 2025. Demetriou noted that the current price level now aligns with their earnings forecasts for the bank. Despite acknowledging the uncertain outlook, the analyst pointed out that SEB is well-positioned to benefit from an economic recovery due to its diversified business model, as demonstrated in the first quarter of 2025.

In addition to the rating upgrade, Jefferies also revised its earnings per share (EPS) estimates for SEB upward by 2% for the years 2026 and 2027. This positive adjustment reflects the firm’s anticipation of SEB’s profitability in the coming years.

SEB’s first-quarter performance was cited as a small indication of the bank’s capability to leverage its diversified operations. This diversity is expected to play a significant role in the bank’s ability to capitalize on future market recoveries.

The new price target set by Jefferies at SEK 140.00 represents an increase from the previous target and is indicative of the firm’s revised expectations for the bank’s stock performance. The upgrade to a Hold rating suggests that Jefferies now views SEB’s stock as a more stable investment option.

In other recent news, Citi analyst Shrey Srivastava adjusted the price target for Skandinaviska Enskilda Banken AB to SEK176.00 from SEK164.00, maintaining a Neutral rating on the stock. This update follows the bank’s fourth-quarter results for 2024 and incorporates economic factors such as the forward curve and risk-free rate movements. Srivastava anticipates a slight increase in the bank’s earnings per share for 2025 to 2027, expecting a 1-2% rise, largely due to anticipated growth in net interest income. This growth is expected from stronger loan growth, particularly in the Baltics and among large corporate clients. However, recent geopolitical events might pose risks to these growth assumptions. Despite these positive adjustments, Citi’s profit forecasts for 2025 to 2027 remain 1-5% below the consensus. The price target increase is also influenced by an assumption of a higher dividend payout ratio. Srivastava acknowledges SEB’s potential benefits from volume growth and fee-based income but notes the shares may appear relatively expensive.

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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