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Investing.com - Kepler Cheuvreux upgraded Nordea Bank Abp (ST:NDA) (OTC:NRDBY) stock rating from Reduce to Hold while raising its price target to EUR12.90 from EUR12.70 ahead of the bank’s second-quarter results. The stock has shown remarkable strength with a 46% gain year-to-date, according to InvestingPro data, which also indicates the bank maintains a GOOD financial health score.
The research firm cited Nordea’s low interest rate sensitivity and expected top-of-the-sector long-term ROTE (Return on Tangible Equity) as justification for the improved rating, despite expectations that investor focus will shift away from defensive sectors like banking toward more growth-oriented areas.
Kepler Cheuvreux forecasts 2% lower earnings per share quarter-over-quarter, anticipating lower trading income and higher credit losses when Nordea reports its second-quarter results on July 17.
The firm also raised its 2026-27 estimates slightly based on higher asset management income forecasts for the Nordic banking group.
The modest price target increase of approximately 2% reflects the research firm’s adjusted outlook while maintaining a cautious stance as market sentiment gradually shifts to a risk-on mode.
In other recent news, Nordea Bank’s first-quarter results for 2025 have drawn attention due to their solid performance. The bank’s pre-provision profits exceeded expectations by 4%, driven by improved net interest income and reduced costs. Additionally, Nordea Bank’s profit before tax surpassed estimates by 7%, aided by lower-than-anticipated impairments. The bank’s CET1 ratio stood at 15.7%, 20 basis points above forecasts, highlighting its strong capital generation. Jefferies analyst Alexander Demetriou responded to these results by raising the price target for Nordea Bank shares to €13.10 from €13.00, while maintaining a Buy rating. The analyst noted the bank’s consistent achievement of key financial targets and its steady progress towards a return on equity goal of over 15% for 2025. These developments have led Jefferies to make slight adjustments to their forecasts, reflecting continued confidence in Nordea Bank’s performance.
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