Analysts have raised their price target for Jyske Bank from DKK 738.75 to DKK 763.50. They cite improved profit margins and a more optimistic outlook, despite only modest changes in revenue projections and discount rates.
Analyst Commentary
Bullish Takeaways
- Bullish analysts cite the recent upward adjustment in the price target as a result of continued improvement in profit margins.
- There is an optimistic expectation for sustained earnings growth, supported by solid operational execution.
- The maintained Overweight rating indicates increased confidence in Jyske Bank's ability to outperform sector peers.
- Despite relatively stable revenue assumptions, the incremental increases in valuation reflect durable fundamentals and prudent risk management.
Bearish Takeaways
- Bearish analysts note that only slight changes in revenue projections and discount rates limit the scale of upward valuation revisions.
- Cautions continue regarding the potential impact of market volatility on future profitability.
- Concerns remain regarding competitive pressures in the banking sector that could challenge margin expansion over the medium term.
What's in the News
- Jyske Bank raised its 2025 net profit guidance to DKK 4.9 billion to 5.3 billion, with expected earnings per share of DKK 77 to 84, up from previous forecasts of up to DKK 4.6 billion and DKK 73 per share (Key Developments).
- The company had previously updated its 2025 guidance, projecting net profit at the upper or very upper end of DKK 3.8 billion to DKK 4.6 billion, and earnings per share at the upper end of DKK 60 to 73 (Key Developments).
- Jyske Bank completed a share buyback program, repurchasing 1,167,662 shares, representing 1.9 percent of the company, for DKK 645 million. This included 900,906 shares bought between April 1 and June 30, 2025 (Key Developments).
Valuation Changes
- Consensus Analyst Price Target has risen slightly, from DKK 738.75 to DKK 763.50.
- Discount Rate increased marginally, moving from 6.22 percent to 6.23 percent.
- Revenue Growth estimates improved modestly, with the projected decline narrowed from -4.29 percent to -4.17 percent.
- Net Profit Margin increased slightly, rising from 34.91 percent to 35.53 percent.
- Future P/E ratio edged higher, moving from 11.52x to 11.66x.
Disclaimer
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