JPMorgan upgrades Intrum stock rating on improved servicing outlook

Published 13/06/2025, 10:22
JPMorgan upgrades Intrum stock rating on improved servicing outlook

JPMorgan raised its rating on Intrum AB (INTRUM:SS) to Neutral from Underweight on Monday, while increasing its price target to SEK45.00 from SEK31.00, citing improved profitability in the company’s servicing division.

The upgrade follows Intrum’s first-quarter 2025 results, which showed better group costs driven by the servicing division, according to JPMorgan’s analysis. The firm now expects Intrum to achieve its target of over 25% servicing EBIT margin by 2026.

JPMorgan noted the importance of this improvement as Intrum shifts toward a more capital-light servicing business model. Despite raising servicing adjusted EBIT estimates, the firm reduced its investing EBIT projections and forecasted a wider drag from central operations and eliminations.

The firm’s leverage ratio forecasts remain largely unchanged, with JPMorgan still expecting Intrum to reach approximately 3x leverage ratio only toward the end of 2028.

With no refinancing risk until 2027, JPMorgan believes Intrum now has "some room to breathe and focus on restoring the overall profitability and cash generation of the Group," factors that contributed to the rating upgrade.

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