Kepler Cheuvreux upgrades Nordea Bank stock to Hold on lower interest rate sensitivity

Published 07/07/2025, 08:32
Kepler Cheuvreux upgrades Nordea Bank stock to Hold on lower interest rate sensitivity

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.

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

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.