Kepler raises SEB stock target, downgrades to hold on sentiment shift

Published 21/05/2025, 12:06
Kepler raises SEB stock target, downgrades to hold on sentiment shift

On Wednesday, Kepler Cheuvreux adjusted its stance on Skandinaviska Enskilda Banken AB (SEBA:SS) (OTC: SKVKY), shifting the bank’s stock rating from Buy to Hold, while slightly increasing the price target from SEK 164.00 to SEK 168.00. The decision comes as Kepler Cheuvreux anticipates a market transition from defensive investments to those with more growth potential.

Markus Sandgren of Kepler Cheuvreux noted that the adjustment in the price target, which represents a 2% increase, is based on the bank’s expected return on tangible equity (ROTE) and the valuation levels of its peers. This evaluation led to a target book value (TBV) multiple of 1.50 times. Sandgren praised SEB for its robust presence in the corporate banking segment, which contributed to the revised price target.

The downgrade in rating reflects SEB’s recent strong share price performance, combined with a forecasted shift in market sentiment towards the banking sector. According to Sandgren, as the market sentiment evolves to a ’risk-on’ approach, the focus is likely to move away from defensive stocks like SEB.

Kepler Cheuvreux’s revised estimates also include minor adjustments, though specific details of these changes were not disclosed. The firm’s analysis suggests that the banking sector may see a change in investor preferences in the near future.

SEB’s new price target of SEK 168.00 by Kepler Cheuvreux indicates a modest confidence in the bank’s ability to maintain its value, while the hold rating suggests that the firm does not see significant upside potential in the stock at this time.

In other recent news, Skandinaviska Enskilda Banken AB (SEB) has seen notable updates from financial analysts. Jefferies upgraded SEB’s stock rating from Underperform to Hold, raising the price target from SEK 135.00 to SEK 140.00. This decision reflects Jefferies’ revised earnings per share (EPS) estimates for SEB, which have been increased by 2% for the years 2026 and 2027. The upgrade suggests that SEB is in a favorable position to benefit from an economic recovery, supported by its diversified business model. Meanwhile, Citi has also revised its outlook for SEB, increasing the price target to SEK 176.00 from SEK 164.00, while maintaining a Neutral rating. Citi’s updated model forecasts a slight rise in EPS from 2025 to 2027, driven by expected growth in net interest income, particularly in the Baltics and among large corporate clients. Despite these positive adjustments, Citi’s estimates remain cautious, with net profit forecasts slightly below consensus. Analysts have noted SEB’s potential benefits from volume growth, although some concerns remain about the stock’s valuation.

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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